ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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ARVIND MILLS-Expansion Plans

EPW Research Foundation MUKAND New Steel Plant MUKAND, the country's leading mini steel unit, improved its performance in 1995-96. The company produces iron and steel products such as wire rods, bars, rods and sections and bright bars; steel castings including alloy steel castings; and industrial machinery including spares, assemblies and component parts. The Bajajs and Shahs together hold 32 per cent of the company's equity and another 32 per cent is held by financial institutions. While net sales increased by 22.2 per cent over the previous year, value of production improved by 24.4 per cent. The company produced 2,16,261 tonnes and sold 2,12,214 tonnes of iron and steel products in 1995-96 compared to a production of 2,00,191 tonnes and sale of 1,95,352 tonnes in the previous year, representing increases of 8 per cent and 8.6 per cent, respectively. The higher offtake was mainly due to the higher demand for steel from automobile and engineering units in the country. A lower increase in operating expenses led to a rise of 44.1 per cent in operating profit. Howe ver, increased interest cost (up 27.7 per cent), higher depreciation charges (up 25.3 per cent) and the tax provision of Rs 10 crore (1994-95: nil) led to a lower 15 per cent rise in net profit. Consequently, the company did not increase the dividend from last year's 35 per cent.

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