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

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Higher Profits despite Lower Margins

Hansavivek BARODA RAYON is going ahead with the preliminaries for its nylon tyre-cord project manufacture annually of 2,000 tonnes of cord. The collaboration agreement with Unitika of Japan has been taken on record by the Government of India. Government has communicated to the company its intention to clear the project under the MRTP Act on certain conditions, which have been accepted by the company. Government has also cleared the foreign exchange equivalent to Rs 240 lakhs for the import of plant and machinery. Meanwhile, steps are being taken to convert the letter of intent' into an industrial licence. It is intended to finance the project with internal resources and borrowings from the financial institutions, to whom applications have been submitted. It is also proposed to issue some preference capital. The company may also raise the equity if the financial institutions in sist on this. The implementation of the Rs 40-crore rayon-grade pulp project, proposed to be set up in MP, is also in progress. The initial laboratory tests, of wood collected from the forests, have shown encouraging results. The company has received a letter of intent for increasing the nylon filament yarn capacity, from 1,800 tonnes to 2,100 tonnes per annum. The company expects to get the industrial licence soon. The management does not intend to raise any equity or preference capital for implementation of this scheme. The cellophane project is also receiving the attention of the management. The capita] goods application is awaiting government clearance, During 1974, the company increased its sales and gross profit

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