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

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Mixed Picture

Mixed Picture Hansavivek ALKALI AND CHEMICAL CORPORATION OF INDIA has suffered a severe setback in its performance during 1977-78. There was a strike at Rishra works for over 70 days and expenses incurred in' the initial period at the new Ennore works and higher interest charges following increased borrowings raised to finance the new projects. Total net sales have declined modestly from Rs 46.53 crores to Rs 45.24 crores; but gross profit has fallen steeply, from Rs 3.13 crores to Rs 1.52 crores. Although there is no tax liability on account of substantial efs being available from capitalisa- of the new projects, net profit is almost halved at Rs 64 lakhs (Rs 124 lakhs). The directors skipped declaration of interim dividend and proposed a single dividend at 10 per cent which is covered 1.34 times by earnings. Production of polyethylene was lower early in the year, but was subsequently maintained at the rated capacity. The entire production was marketed in spite of large arrivals of imported material and the start-up of IPCL's new plant towards the end of the year. Looking to the rapidly developing competition, the management is taking steps to develop newer polymers and applications. The company has also made representations for reduction in the levies imposed on alcohol by the state government. Sales of rubber chemicals in the earlier part of the year were poor owing to disruption in production at Rishra, but subsequently both production and sales were maximised. Diphenylamine and rubber chemicals capacities were enhanced. The company is now able to meet total domestic requirements of of diphenylamine. Turnover of paints was maintainedThe company established usage of new products by industrial customers by the electrostatic spray and electrodeposition processes. Production of caustic soda and chlorine was curtailed as the cell room could be only gradually put back into production after rebuilding a major number of cells. All pharmaceutical formulations in the current range were produced at the Ennore plant which was commissioned towards the end of 1976- 77. The bulk chemicals plant was also commissioned and a number of chemi- cals were manufactured there. Demand for BHC continued to be good, but production was affected the management claims because of the strike in the earlier part of the year and subsequently because of erratic supply of benzene. Sales of Gramoxone increased by over 30 per cent.

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