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Dogged by Load-Shedding

Dogged by Load-Shedding Hansavivek TINPLATE COMPANY OF INDIA has turned out disappointing working results. Despite a higher turnover of Rs 36.27 crores against Rs 30 crores, the outcome has been a net loss of Rs 2.93 crores against a net profit of Rs 9 lakhs in the previous year. Even the current year does not hold out promise of any marked improvement in the company's performance. Due to shortfall in coal supply during the first quarter and the unprecedented loadshedding, the company could carry on with restricted operations during the first half of this year. The directors feel that if the power situation improves, the company will be able to make up the loss in production to some extent in the second half. Even then due to heavy incidence of interest and depreciation, the company is likely to incur a loss. It is passing through a difficult liquidity position.

Acquiring Lab Base

Acquiring Lab Base Hansavivek E MERCK (INDIA)'s non-resident shareholders have reduced their equity holding in the company from 51 per cent to 40 per cent to enable the company to effectively participate in the growing market in which it operates. As a first step towards a diversification/expansion programme, the company proposes to acquire a significant shareholding in another Indian company, 'Suneeta Laboratories' of Indore. This company has a strong scientific base and is equipped with professional and qualified scientists. With this acquisition, it is hoped that it would be possible to enlarge the scope for manufacturing several active ingredients. It is intended to develop a separate pharmaceutical line in that company. Such a participation will also contribute to the solving of the bulk drug/formulation ratios prescribed under the new drug policy. In the pharmaceutical division, several essential drugs are intended to be introduced during the current year, such as praziquantel, sep- topal beads and anti-cancer products. Other products planned for introduction are anti- The Week's Companies malarials and anti-inflammatory. In the chemical division, the BDH programme, introduced last year, has progressed satisfactorily. This range is being increased rapidly. In addition, several other specialised items like indicator papers and diagnostics have been introduced in the market. Meanwhile, the company's application for regularisation of capacity under the liberalised scheme has been approved by the government, subject to environmental clearances which too have been obtained. The company has earned a gross profit of Rs 2.88 crore against Rs 2.54 crore in the previous year, while sales have expanded from Rs 30.40 crore to Rs 38.85 crore. These figures reflect contraction of margins. Net profit is Rs 1.67 crore (Rs 1.22 crore). The directors have recommended a dividend of 15 per cent on the enlarged capital as against 18 per cent paid last year on the old capital base. The distribution is covered 2.53 times by earnings as against 2.49 times previously. During the year, the company's exports amounted to Rs 4.13 crore as against Rs 2.39 crore achieved last year. The main countries to which export were effected were USSR, the US and Poland.

New Peaks in Silver Jubilee Year

New Peaks in Silver Jubilee Year Hansavivek GUJARAT STATE FERTILISERS COMPANY (GSFC) has received a letter of intent for expanding the capacity of its caprolactum plant from 20,000 tonnes to 50,000 tonnes per annum. The central government, in the meantime, has declared that the economic size of a caprolactum plant will be one lakh tonnes per annum. Accordingly, the company is seeking expansion of the capacity to one lakh tonnes per annum to be executed in two stages of 50,000 tonnes each. The company has been issued a letter of intent to expand the capacity of melamine plant from 5,000 tonnes to 15,000 tonnes per annum and work on the expansion is to start soon, A letter of intent for setting up a 1,350 tonnes per day ammonia plant has been received by the company and work on the project will commence shortly. The project for co-generation of steam and power will be taken up for implementation expeditiously. With the completion of the project by the end of 1988, power generation of 15 MW would be available at maximum operation of the plants. Work in the new company, Gujarat Industries Power Company, in which GSFC is one of the major promoters, has already started. However, the project costs have increased substantially requiring all the promoters to subscribe to additional equity. The company was able to commission its DAP process plant and associated utility in a very short period of 17 months, whereas normally a project of this magnitude would take about 36 months.

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.

Higher Drug Sales

income. Imports from these countries of course stood their ground at 5 per cent of national income in both years, and our overall imports were close to 10 per cent of national income.

Scarred by Oleum Leak

Scarred by Oleum Leak Hansavivek DCM

Tractors on the Move

really emanates from the top leadership. Forty years after independence, we find otherwise rational people suddenly starting the game of boosting religious dogma and ritual. It started with Indira Gandhi who, in the late seventies, suddenly started making a great show of visiting temples and paying obeisance. It is increasingly evident today, in every aspect of government policy

Textiles in Distress

So she would trot from activity to activity, from project to scheme, a cheerfulness would radiate from her core, and infect you. She would dream, but she had a Punjabi eye for detail, her thoroughness would overwhelm you. A thoroughness delicately balanced with a rare thoughtfulness, to each person who would visit her she would be equally devastatingly considerate. Again, was it not that early training within the fold which showed up here, there would be no deviation from principles, but firmness would be intermeshed with charm, and charm would be the surrogate for firmness. The policy of the principle is supreme, but we owe it to the cause to convince the others and carry with us the largest possible measure of support, so gestures which do not compromise the principle are in order; control your irritation and impatience, it is a messy world, it is infested by people who are not like you and me, because we want to change this world, because we want to transform these people, we must learn how to be long-suffering, we must learn to keep still in order that we might learn to move fast.

Opportunities in Telecommunications

Opportunities in Telecommunications SIEMENS INDIA, after last year's setback caused by difficult business conditions and disturbed industrial relations for more than four months, has achieved alround progress during 1985-86. Orders booked increased by 28 per cent to Rs 204.9 crore and turnover by 26 per cent to Rs 173.5 crore. With margins enhanced despite escalation of all input costs, gross profit leapt from Rs 10.39 crore to Rs 15.49 crore and net profit from Rs 2.64 crore to Rs 4.97 crore. Dividend has been stepped up from 14 per cent to 16 per cent. The increased distribution is covered 2.85 times by earnings as against 1.75 times previously. The board has also recommended a gift of equity shares on a one-for- four bases. Moreover, it is proposed to raise additional finance for the investment plans through an issue of equity shares by way of 'rights' in the ratio 1:2 at a premium of Rs 30 per share after the issue of bonus shares, Besides, it is intended to make a non convertible debenture issue of Rs 4 crore by way of private placement to augment working capital resources. The Rs 20 crore industrial electronics project at Nasik is in progress as per schedule. The pilot plant for training workers has already started and commercial production is expected to commence by November 1987. The directors expect that in 5 years the plant will provide sizeable business volume in industrial electronics products such as data acquisition, data logging and control-systems and process control equipment of the latest design. The central government has cleared a proposal from the West Bengal Electronics Industry Development Corporation (WEBEL), a government of West Bengal undertaking for the manufacture of 5,000 numbers per annum of electronic teleprinters based on technology from Siemens, West Germany. For this project, Siemens India has entered into a memorandum of understanding with WEBEL for promoting a joint venture company with 49 per cent equity by it and 51 per cent by WEBEL. The government has cleared the company's proposal for manufacture of critical components for electronic telephone instruments, subject to the condition that the unit should be located in a notified backward area. The company has also received a proposal from WEBEL to include this item for manufacture under the proposed joint venture company. The management has decided to accept WEBEL

Timely Progress

Timely Progress Hansavivek HYDERABAD ALLWYN's watch project is in progress. The first phase of the project for the component manufacture was inaugurated in April last year. The indigenisation of the components started in 1985-86 and is expected to be in full swing in the current year. The capacity of the watch case unit is also being expanded to t million pieces per annum. The company proposes to set up one more unit for manufacture of refrigerators in AP. This will increase its annual production capacity to 2.5 lakh numbers. The company was able to lift its sales during the year ended July 1986 from Rs 61.22 crore to Rs 75.54 crore but margins lagged behind and gross profit looked up only modestly from Rs 3.42 crore to Rs 3.58 crore. Net profit came to Rs 2.81 crore (Rs 2,53 crore) and the unchanged dividend of 14 per cent was covered 2.60 times by earnings as against 4.96 times previously. Production and sale of refrigerators were 70,501 and 71,066 numbers against 60,017 and 60,051 numbers, respectively during the previous year. The The Week's Companies company continues to extend 7 years' warranty for its compressors in the refrigerators- Turnover of the auto division was also better and prospects of the current year are encouraging with sufficient orders on hand. The company had increased the production capacity of LPG cylinders to one million numbers per annum, but production during the year was only 3.16 lakh numbers due to low offtake by the oil companies. Production and sale of watches was 8.33 lakh and 8.02 lakh numbers compared to 6.35 lakh and 6.74 lakh numbers, respectively, in the previous year The company has revived manufacturing and selling of steel furniture and office equipment in a big way III mover during the year was Rs 180 lakh compared to Rs 66 lakh in the previous year The directors expect production and sale of furniture to go up upto about three times the turnover in 1985-86. During the year, the company permitted conversion of 30 per cent of the face value debentures into equity shares as per the terms of the debenture issue. Accor (Rs lakh) * 17 months.

Untouched by Engineering Recession

viduals with the collective body of which they happen to be members? Few bother about schools of moral philosophy till as long as the latter do not receive recognition as providing the basis of an empirical reality! The parts may be corrupt and decaying, the whole may nonetheless be the soul of integrity: it is a daring assertion to make, and an exceptionally difficult one to prove. The judge is, however, more than confident that he has proved it to his own satisfaction, and it would be anarchy should a judge's judgment be called in question. Should, as a consequence of the report the judge has submitted, a nihilist social doctrine now receive an accidental accolade, the theists of the world would justifiably succeed in finding plenty to rejoice in. Who knows, a thousand years hence, a dusty, worm-ridden copy of the judge's report will be hailed as confirmatory evidence of the beginning of a new epoch, an epoch heralding the advent of a morality which absolved from punishment all acts of collective butchery on the pretext that such acts can never be proven, vide the Impossibility Theorem.

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