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

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Tax-Free Growth

Tax-Free Growth Hansavivek ALKALI AND CHEMICAL CORPORATION OF INDIA has had a good year to September 30 last. Sales, profits and margins, all have been higher than in the previous year. What is more, there is no tax liability again due to reliefs available from capitalisation of the new projects and dividend, stepped up by 6 points to 16 per cent, has a better cover. But directors point out that costs of most of the raw materials and services used by the company registered significant increases towards the end of the year and that fuller impact of this will be reflected in the current year's per- formance. Sales increased from Rs 45.24 crores to Rs 51.81 crores in 1978- 79 and gross profit mare than doubled to Rs 3.16 crores from the previous year's Rs 1.52 crores. Net profit was also substantially higher at Rs 146 lakhs (Rs 64 lakhs). Production of polyethylene improved despite power shortages and occasional industrial relations problems. Production and sales of rubber chemicals improved and the company regained its share of the market lost after the strike in 1977. With enhanced availability of dipheny- lamine from its expanded unit, the company was able to meet the total domestic requirments of this chemical. Production and sales of liquid mints in the trade sector grew satisfactorily, but demand for paints from industrial users remained low. Due to power shortages and difficult availability of industrial salt, production of caustic soda and chlorine continued at below licensed capacity. The market for caustic soda was good, but long-term outlook for this unit remains uncertain due to high costs of industrial salt and electricity in West Bengal. Sales of pharmaceuticals recorded a 38 per cent increase over the previous year. Bulk drugs and formulations thereof, made for the first time at Ennore, were well accepted by the medical profession. The leng delay by government in approving the prices of drugs made at Ennore is a setback and efforts continue to resolve the problem. Among crop protection chemicals, BHC demand remained buoyant until affected by drought in the last quartet of the year. Gramoxone sales to tea and coffee plantations were maintained close to last year's levels. The management is contemplating introducing a new range of insecticides from local manufacture, CEAT TYRES OF INDIA has decided to undertake manufacture of radial tyres, initially for passenger cars. Extensive field tests are being conducted after which the decision to manufacture radial truck tyres will be taken. Technical know how for the radial tyres is being offered by CEAT Inter. national of Switzerland and the com- pany is seeking the approval of the Central government. The company has completed expansion of its plant at Bhandup in Bombay for production of additional 1.60 lakhs each of automo- The Week's Companies (Rs Lakhs)

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