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

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The DMT Miracle

The DMT Miracle Hansavivek INDIAN PETROCHEMICALS has achieved satisfactory progress in its sixth year ended March 1975, when it earned a net profit of Rs 8.06 crores as against a net loss of Rs 2.81 crores incurred in the previous year and thus not only wiped off the entire accumulated deficit of Rs 7,73 crores, but also ploughed back Rs 24 lakhs. These results followed a rise in production of DMT from 5,169 tonnes to 13,344 tonnes. Production of orthoxylene and mixed xylenes however was lower at 7,898 tonnes and 1,533 tonnes against 7,929 tonnes and 1,928 tonnes, respectively. The company was able to meet the entire dead for the products and net sales jumped from Rs 5.16 crores to Rs 24.45 crores. Both inventories and wages in relation to sales were substantially lower compared to the previous year. Paid-up capital was increased from Rs 49 crores to Rs 89 crores and borrowings were lowered from Rs 16.70 crores to Rs 12.79 crores. The cost of interest came down from Rs 2.13 crores to Rs 1.44 crores. Ali the units were operated during 1974-75' The directors say that, given uninterrupted availability of utilities and the supply of main raw materials, paraxylene and methanol, full utilisation of rated capacity is achievable. The propane refrigeration compressor, commissioned after repairs in March 1974, has been operating satisfactorily. An order has been placed for a stand-by compressor. The orthoxylene and paraxyiene units have also been shown to be capable of operating at a high percentage of rated capacity and steps are being taken to further increase capacity utilisation. Owing to reduced offtake of orthoxylene and DMT in the last quarter of 1974 and early part of 1975, the plants could not be operated to their full potential. Offtake of DMT has improved since March 1975 and this trend is expected to continue. International prices of the company's products, which were high in 1973- 74, fell to levels below the cost of production owing to the high prices of raw materials. Export was therefore not possible.

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