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

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Where Smaller Margins Don t Hurt

Where Smaller Margins Don't Hurt Hansavivek SOUTH INDIA VISCOSE expects to complate expansion of its staple fibre plant, funs 10 tonnes to 30 tonnes per day, and to begin production using the expanded capacity in October or November next. The company has also got 'letters of intent' for setting up a potynosic plant with a capacity of 20 tonnes per day and for expansion of the pulp plant from 60 tonnes to 120 tonnes per day. The expansion is to be financed entirely by internal resources and borrowings, and no fresh capita] is intended to be raised. Last year, the company's production of rayon yarn was less by 423 tonnes and that of wood pulp less by 910 tonnes, compared to the preceding year, owing to a 40-day strike by workers and the power-cut. The The Week's Companies workers resorted to a stay-in strike in November/December on the question of bonus. The matter was settled by payment of 125 per cent of the total earnings as bonus and another 15 per cent as ex-gratia The 25 per cent power-cut, imposed in October last, was raised to 40 per cent from February 1 and further to 75 per cent from February 15. Although the company has been using a generator, production has been affected to a great extent Staple fibre production has been stopped completely and rayon production has been reduced by 50 per cent The pulp plant, however, is being worked to full capacity. The management complains that STC has net only not accepted the company's claim towards reimbursement of loss and interest under the export promotion scheme, but has claimed about Rs 28 lakhs as excess reimbursement made by it in prior years. The matter is in court. Meanwhile, the appeal to the High Court, against the levy of fees by the Textile Committee, has been decided in favour of the company. Despite slightly lower profit, dividend has been again stepped up by 4 points to 20 per cent and is shortearned with the cover at 0.83.

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