Despite Raw Material Shortages

Despite Raw Material Shortages Hansavivek MOTOR INDUSTRIES COMPANY has completed construction of the first phase of its factory building, at Nasik and is shifting machinery there from the rented premises in which it had been carrying on operations hitherto. Complete production of nozzles and nozzle holders at its own factory at Nasik is expected to start by the end of this year. The first lot of imported machinery was received and installed last year and substantial shipments are expected during 1974. The company allotted 375,000 bonus shares on a one-for-one basis in June 1973. A 'rights' issue of 95,588 shares at a premium of Rs 75 per share was made in the second half of 1973 to reduce the holding of Robert Bosch. Out of these, 48,000 shares were allotted to the five financial institutions on conversion of a part of the loan taken from them for financing the company's fifth expansion. The remaining 47,588 shares were issued to the existing Indian shareholders. The company has obtained a long-term loan of Rs 3 crores from TCICI, IDBI, IFCI, LIC and UTI through privately placed debentures. Irregular supplies of raw materials notwithstanding, MICO turned out good results for 1973. Net sales advanced by 21 per cent and profit-margins too edged up a little, although the wage bill in relation to sales was considerably higher. The ratio of inventories/sales was also higher compared to the previous year. Dividend, lowered from 17.5 per cent to 12 per cent, payable on the enlarged capital, required more but the earnings- cover was maintained at the last year's level Exports more than doubled to Rs 363 lakhs (Rs 172 lakhs).