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

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Marketing Role Not Appreciated

Marketing Role Not Appreciated Hansavivek VOLTAS has shown greatly improved performance during 1977-78 compared to the very disappointing results of the previous year and has stepped up dividend by 5 points to 12 per cent Net sales have increased from Rs 156 crores and gross profit is up from Rs 67 lakhs to Rs 186 lakhs. Net profit is Rs 105 lakhs (Rs 10 lakhs) and the dividend is covered nearly 1.3 times. This outcome is attributed to revival in demand for certain products such as consumer durables and pesticides, stricter and more effective controls over expenses and better management of financial resources. However, a number of factors continued to operate hampering the return to the higher levels of profits attained in the five years from 1969-70. Demand for mining machinery continues to be low; the interest burden remains heavy; payments from government are inordinately delayed. The settlement of the charters of demands of employees at Bombay and at most of the branches has, according to the management, added over Rs 80 lakhs to staff costs, but the hope for increase in productivity has not yet materialised. The company's export billings increased by 42 per cent to Rs 5.79 crores and the management is now concentrating more on seeking project orders and on providing consultancy service in various fields such as textile mills, airconditioning and refrigeration, tubewell drilling, electrical sub-stations and water management. During the first four months of the current year, the company's turnover has been 27 per cent higher than in the same period last year. Gross margins, though significantly better, have not kept pace with the increase in sales. The overall performance during the current year is expected to show further improvement. While the order book position is generally good, there is as yet inadequate demand for mining equipment, forklift trucks, and water/air pollution equipment. The management's increased emphasis on rural marketing, agricultural inputs, turnkey projects and the use of newer technologies is beginning to yield results. The chairman, Akbar Hydari, bus expressed concern at certain recerit instances where newly established undertakings have been directed by financial institutions from whom th

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