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

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Time for Inventory-Building

Time for Inventory-Building Hansavivek RAPUR MANUFACTURING has decided not to implement its ceramics project, as government suggested certain changes in the foreign collaboration agreement which were not acceptable to the collaborators. Besides, the esimated project cost has gone up substantially rendering the project less profitable. The installed capacity of the mills is 45,512 ring spindles, 6,760 doubling spindles and 800 looms (including 264 automatic ones) with complete dyeing, bleaching, roller printing plants and physical and chemical testing laboratory. As a part of the reorganisation and renovation programme, the company incurred last year a capital expenditure of Rs 30 lakhs. Im proved market conditions helped the company to produce better results for 1972, although it had to contend with intermittent shortage of power and allround rise in costs. The prices of Indian cotton had gone down considerably because of a record crop, but the company had to spend more on cotton as it consumed a higher proportion of foreign cotton, the prices of which ruled higher. The import duty of 40 per cent on imported cotton, imposed in the last budget, in place of the effective rate of about 3.5 per cent heretofore, is likely to affect the current year's profit. The excise duty on 50:50 polyestercotton blended fabrics has been changed to 15 per cent ad valorem, which, it is felt, may not be absorbed by the market. The company's exports declined last year from Rs 18 lakhs to Rs 10 lakhs. The further levy imposed by the Indian Cotton Mills' Federation as export promotion fees has been of the order of Rs 3 lakhs. The government has fixed compulsory exports for 1973 at 16 per cent of the packed production of 1971. The management is hopeful that the company will be able to discharge the obligation fully. The ICMF decided in March last to raise the rate of contribution to a rupee per square metre of shortfall in manufacturing controlled cloth in respect of the period July to December 1972. This liability is estimated at about Rs 9 lakhs and will arise in June 1973 in the event the company fails to fulfil the obligation by that time. The directors say that the sophisticated and modern machinery in the mills is not The Week's Companies (Rs in Lakhs)

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