Expanding Business and Margins

Expanding Business and Margins Hansavivek HINDUSTAN LEVER expects to commission its phosphate project at Haldia during the third quarter of this year. Work on the project has progressed on schedule, despite disruption, caused by strikes at the fabricators' works in different parts of the country. Investigative work on some other projects is continuing, RBI has directed the company, under FERA, to reduce foreign shareholding to 40 per cent by the end of this year. The company has shown good results for 1978 with higher sales on slightly improved margins. Net sales have increased from Rs 262 crores to Rs 301 crores and gross profit has risen from Rs 23.81 crores to Rs 28.43 crores. Net profit is Rs 9.31 crores (Rs 7.82 crores). Unchanged total dividend of 20 per cent, on the enlarged capital, is covered 1.84 times against 2.20 times previously. The company was able to sustain high level of soap production. Manufacturing facilities for detergents were geared to meet the increased demand of NSD bars and powder. Production and sales of chemicals also increased. A special catalyst for hydrogenation of fatty acids and technical oils was introduced in the market, Sales of fine chemicals and glycerine registered further growth. Demand for vanaspati continued to increase. The company restarted its vanaspati factory at Tiruchirapalli. The dairy business showed encouraging trends aand improved facilities are being provided to make it even more successful. Demand for cattle-feed increased with improvement in its quality. The company's toiletry preparations continued to enjoy consumer preference. The company's export turnover amounted to Rs 17,6 crores. This would have been higher but for flie disruption caused by the port strike in Bombay which delayed a number of .shipments. Exports of ossein and dical- cium phosphate, from the Taloja plant, increased significantly, making the com pany one of the country's largest exporters of these products. The com; pany engaged Engineers India to prepare project costs for the fullscale manufacture of synthetic fatty acid based on its process which has now been scaled up. It has been established that paraffin, recovered from Bombay High crude, could be a suitable raw material. Commercial evaluation of the project is in progress.