Pests Affect Sugar Profits

Pests Affect Sugar Profits Hansavivek MODI INDUSTRIES has turned to poor results for the 18-month period ending September last. Although sales amounted to Rs 148.74 crore against Rs 105.96 crore, gross profit tumbled from Rs 6.28 crore to Rs 3,51 crore reflecting a sharp fall in profit margins. Net profit declined from Rs 353 lakh to Rs 99 lakh. The unchanged dividend at 18 per cent was covered 2.38 times by earnings as against 8.94 times previously. The sugar unit crushed a lower quantity of 16.38 lakh quintals of sugarcane as against 25.10 lakh quintals in the previous year due to lower availability of sugarcane on account of pyrilla pest in the crop of the region. The working of the steel unit was affected by a prolonged strike and go-slow, erratic power supply and price constraints. The vanaspati unit performed well. The electrode unit is exploring the possibility of acquiring the latest technology in the manufacture of electrodes. The paint unit did well again on the export front and expects to improve further this year. The working of the soap, lantern, distillery and gas units was satisfactory. The modernisation/expansion/diversification schemes of various units have been in pro- gress. The modernisation of the rolling mill of the steel unit has been completed in collaboration with Centro-Morgard Shammer of Sweden. It is expected that after it is commissioned, the company would be the first mini-steel plant in northern India to produce high carbon special and alloy steel wire rods, for which there is a ready demand. It is also expected that it would improve the turnover and profitability of the company considerably. A new 10/12 ton electric arc furnace was installed and commissioned in the unit 'B'. A new continuous casing machine is being installed in old melting shop to complete the process of modernisation of steel unit and it is expected to be commissioned in June 1987. The modernisation scheme of the vanaspati unit, likely to be completed during the current year, would make it the most modern and technically advanced unit in the country resulting in better quality, lower cost and higher production. In the distillery unit the bio-gas (methane) plant for distillery effluent treatment is likely to be commissioned by June 1987. The paint unit has finalised technical foreign collaboration for the manufacture of speciality paints with Schaepman's Lakfabrieken BV of Holland.