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

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Expanding with All Due Props

Expanding with All Due Props Hansavivek MACHINERY MANUFACTURERS CORPORATION (MMC) is going ahead with its development programmes. Prototype production of Mazroli draw frames is in progress. The product is to be introduced in the current financial year. Construction of the factory and shop offices for the ring frame and ring twisters project at Belwadi, near Mysore, is also expected to be com- pleted on schedule, though it had a setback following an accident in May last. Operations there are expected to commence some time in June nest. The research and development department has developed a prototype of a suspended flyer model speed frame and the machine will be tried out extensively under various mill conditions. Production of this model is expected to commence in the second quarter of the nest financial year. Capital equipment has arrived for manufacture of micro processor based data-processing equipment, and prototype production is expected to commence at the end of the current year. Government approvals for the manufacture of and foreign collaboration lor a matrix printer have been received. A 'letter of intent' for the manufacture of 1,500 numbers floppy disc, drives per annum has also been received from the government. Certain new models of the industrial haulage equipment have been designed by the research and development department. Modernisation of the company's Calcutta factory is also in progress. A sum of Rs 1-10 crore has been spent already on this account. About 80 per cent of the scheme is expected to be completed in the current year. A consortium of financial institutions comprising IDBI, ICICI, TFCT, UTI. CTC anil LIC have approved a loan of Rs 3-64 crore and underwriting of convertible bonds of Rs 50 lakh to finance the new projects at Mysore and Calcutta. A nationalised bunk has agreed to advance a term loan of Rs 100 lakh for these projects. The company obtained consents of the Controller of Capital Issues and RBl for the issue of bonus shares, which have been allotted on a one-for-four basis. A consent letter has also been received for a rights issue of 7,55,025 shares, at par, in the proportion 1:1. The company has fared well during 1979-80, with turnover rising from Rs 13.90 crore to Rs 16.21 crore and gross profit from Rs 79 lakh to Rs 85 lakh. Net profit is better too at Rs .35 lakh, compared to the previous year's Rs '30 lakh Dividend maintained at 10 per cent is covered 2.43 times against 3 times previously. Referring to the current year's prospects, the directors state that inflationary trends combined with major disturbances in North Eastern India have adversely affected supplies of certain materials. Although availability of basic raw materials has improved marginally, supplies cannot he obtained regularly at required levels. In spite, of the anticipated problems they forecast a substantial growth in turnover, partly clue to the well-balanced order-book.

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