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

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Turning Adversity into Profit

Turning Adversity into Profit Hansavivek GUEST KEEN WILLIAMS has been permitted to carry on business under FERA with the existing foreign holding of 58.7 per cent, by moving into sophisticated technological areas with, in a couple of years. Considering the current product profile of the company and the anticipated gowth in sophisticated technological areas, the management has accepted this option. Founded 55 years ago, today GKW has five divisions manufacturing a variety of products. Sankey pressing division makes electrical steel stampings and laminations and the steel division turns out electrically melted special steels, leaded and sulphurised freecutting, alloy, carbon and spring steel hot rolled bars and coils and billets. The fasteners division manufactures high tensile fasteners, mild steel bolts and nuts and spikes. The forging division makes drop, upset and open hammer forgings for automotive, railway and other industries. The engineering and machinery division fabricates special purpose machinery and equipment and also undertakes reconditioning, jobbing and motor rewinding services. Aided by a favourable market trend, GKW has recorded a fair recovery during 1978. Most of its products met with rising demand, and in many instances with improved realisations. Net sales increased from Rs 82.95 crores to Rs 92.42 crores. With margins widened, gross profit rose from Rs 7.24 crores to Rs 9.40 crores. Net profit was Rs 3.47 crores (Rs 2.47 crores). Dividend has been stepped down from 14 per cent to 12 per cent, but is payable on the capital enlarged by a one-for-two bonus issue. The effective higher distribution is covered 1.70 times by earnings as against 1.29 times previously. This improvement in the performance has occurred after taking into account the additional charge for wages arising from wage settlements and production- linked bonus agreement for annual bonus negotiated during the year. In the context of the general labour unrest throughout the country, the company can derive satisfaction in being able to maintain industrial relations on in even keel in almost all its units in the country. Barring minor disruptions, it did not encounter serious proplems in the area of industrial relations. The company's performance was adversely affected by two factors beyond the control of the management. First, the power shortage at the Howrah works was so crippling that it entailed loss of production ranging between and 20 per cent. Secondly, operations at Howrah works were disrupted in September/October as a result of unprecedented floods which ravaged West Bengal. Power shortage remains a major constraint. K C Maitra, who had

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