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

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Travails of Textiles

Travails of Textiles Hansavivek AHMEDABAD ADVANCE MILLS has shown a marked contraction of margins during 1977, as reflected in a marginal rise in gross profit despite near-50 per cent leap in net sales. This was mainly due to the unsatisfactory working results of the textiles division on account of prolonged demand recession and1 persistent rise in costs of raw materials and other inputs. Rate of dearness allowance at Ahmedabad per worker rose from 3,730 to Rs 4,035 per annum. The company had also to pay Rs 17 lakhs by way of minimum bonus as against nil in the previous Besides, the controlled cloth cost Rs 34 lakhs. Working of the metals and special alloy steals divisions improved as a result of consistent efforts to reduce costs and increase efficiency and an improved product- mix. The company has not only maintained an almost consistent share in the market of traditional items, but also , penetrated new areas by introducing a new variety of stainless steel and non-grain oriented silicon steel strips, developed last year. Moreover, it has been able to some extent upgrade its product mix in the direction of thinner gauge higher value items. With a view to meeting increased competition and greater uncertainty regarding prices and availability of raw materials, possibilities of entering new fields are being explored. Plant and machinery worth Rs'8 lakhs were galled at Navsari and worth Rs 35 lakhs at Ahmedabad during 1977. The company has applied to IDBI for a soft term loan of Rs 2.68 crores for modernising and rehabilitating the textile mills.

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