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

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Accent on Technology

Accent on Technology Hansavivek MUKAND IRON AND STEEL WORKS has turned out vastly improved results for the year ended June 1979, although they are not strictly comparable with those of the previous year which covered a period of 15 months and there had been stoppage of production for about 6 months at the Kalwe plant during that period. Production, sales, profits as well as margins have been considerably better and dividend, stepped up from 6 per cent to 10 per cent, is covered 1.96 times. Production of rolled products was higher at 130,095 tonnes as against 107,076 tonnes in 1977-78. Production steel castings was 8,030 tonnes against 9,561 tonnes. Production would have been still higher, but for the severe power cut in May and June 1979. The profit performance also needs to be viewed against the additional burden of about Rs 1.5 crores arising from the settlement with the employees, Rehabilitation of the wire rod The Week's Companies mill at Kalwe is partly completed and the imported billet grinding machine has been installed and commissioned. Government has approved the company's agreement with Societe des Aciers Fins de l'Est (SAFE) of France, which will help it considerably to update its technology as well as product- mix in the higher grades of steel. The company has planned a major modernisation programme for the wire rod making lacility at Kalwe. This is estimated to cost Rs 4 crores. Agreement for technical collaboration with Hitachi or Japan for manufacture of large castings weighing over 0 tonnes apiece has been approved by government. Exports increased to Rs 3.8 crores from Rs 2.3 crores of 1977-78, mainly due to export of 4,956 tonnes of pre-strcssed concrete wires valued at Rs 1.9 crores to China, The company is exploring markets lor export of non-traditional castings, besides further developing markets for railway castings. For meet ing the increased working capital requirements, the company offered 1.50 lakh 11 per cent debentures of Rs 100 each as a 'rights' issue to the Indian shareholders. The issue was fully subscribed. Also, redemption period of the 8,000 debentures of Rs 1,000 each carrying interest at 7.75 per cent has been extended from 1978-83 to 1990-95 by raising the rate of interest to 11 per cent per annum. The company's working during the first five months of the current year has shown further fair improvement, with sales rising to Rs 30.6 crores from Rs 23.3 crores of the same period last year. According to Viicn J Shah, chairman and managing director, the company would have achieved higher prodtiction and turnover, but for credit squeeze and continuous power cut. Even so, he expects the company to achieve a turnover of Rs 8.5 crores this year.

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