High Yielding All the Way

High Yielding All the Way Hansavivek J K SYNTHETICS continues to expand its business. It has obtained an industrial licence for recovery of DMT from polyester waste and manufacture of mono-ethylene glycol as a by-product, with an annual capacity of 4,000 tonnes and 1,000 tonnes, respectively. The technology for both these items has been developed indigenously by the company's research centre. As a result of the modernisation scheme of the nylon yarn plant, the capacities of nylon filament yarn and polyester filament yarn will increase to 5,376 tonnes and 960 tonnes, respectively. The company has also been permitted to expand pro- duction capacity of polyester staple fibre from 900 tonnes to 0,000 tonnes per annum. Meanwhile, the acrylic fibre project is expected to be in operation early next year. Plant and machinery required for the second cement plant have started arriving and the new plant is expected to commence production within the scheduled time. The joint venture in Kenya may commence production during the current year. JKS has turned out impressive results for 1977, with a jump in gross profit, from Rs 11.32 crores to Rs 17.60 crores, following only a modest rise in net sales, from Rs 08.311 crores to Rs 70.55 crores. Net profit is Rs 8.23 crores (Rs 4.21 crores). The directors have repeated 15 per cent distribution on the enlarged capital, which is still covered 2.9 times (3 times). These results have followed increased contribution from most of the sections. The rayon filament yarn plant had to be shut down for some time due to power failure and labour trouble. Even then the working resulted in a modest surplus. Production of cement was lower by 4 per cent due to drastic power cuts and frequent power interruptions. Working of Fibretech Engineers and Manufacturers was affected by severe power cut in UP and disturbed labour situation for several weeks. Syntex Tube's production of metallic cops and bobbins was lower by 14 per cent, but processing jobs and higher plant efficiencies resulted in improved working. Against the proposed issue of 2,25,000 (11 per cent) cumulative redeemable preference shares of Rs 100, each, for raising a part of the finance required for the cement and acrylic projects, directors have decided to issue only one lakh such shares for financing a part of the cement project cost The institutions and banks have agreed, in principle, to provide necessary term loans and also to underwrite the preference shares. The company is seeking approval of the Calcutta and Allahabad high courts and other authorities concerned for the proposed scheme of amalgamation of J K Steel and Industries with it.