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

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Upward All Round

Upward All Round Hansavivek COLOUR-CHEM intends to set up a second factory at Roha, an underdeveloped area of Maharashtra, because the existing factory at Thane is located within the Bombay Metropolitan Regional Development Plan area, where there may be severe restrictions on further expansion. The expansion and diversification projects, already approved, are being implemented at the present unit. As a result of research and development efforts, the company was able to add 15 new items to its range of licensed products. It is now engaged in standardisation of manufacturing processes for more new products and expects to start commercial exploitation of these processes soon. Both units of diketene plant have been in operation since August 1975: but one of these had to be kept idle periodically, owing to inadequate demand for the main diketene-based intermediates. The company has recovered about Rs 33 lakhs from insurers in full settlement of its claim for the cost of restoration of the plant after the explosion and for loss of profit arising therefrom. During the year to March last, the company was able to take full advantage of favourable factors such as rise in demand for its products, improved availability of essential raw materials, and installation of captive power generators which mitigated the restrictive effect of the continuing power cut. It was able to step up production and sales. Gross profit was also higher, but margins came under pressure on account of rise in costs. The unchanged dividend of 12 per cent was covered nearly 2.3 times. The shareholders are also to be offered a gift of shares in the proportion 2:5, and the directors have recorded their intention to maintain the same rate of dividend on the expanded capital after the proposed bonus issue. The company's exports dropped from Rs 2.03 crores to Rs 1.2 crores, whereas it spent Rs 4.46 crores In foreign currency by way of payments of royalty; knowhow and consumption of raw materials, components and spare parts, and remittance of dividends. As the total value of its assets is now in excess of Rs 20 crores, the company will have to register itself under the MRTP Act. The company's turnover in the first three-and-a-half months of the current year has been 30 per cent ahead of the same period last year. The new chairman, D M Khatau, therefore looks forward to another year of good business and higher earnings, although his optimism is tempered by shortages which have surfaced only recently of the essential raw materials, ethylene oxide and naphthalene, and their derivatives. Trie company is setting up at its Thane unit, an effluent treatment plant for which it will receive advice guidance from the German collaborators, Bayer and Hoechst.

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