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

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Marketing Effort Pays

Marketing Effort Pays Hansavivek METAL BOX INDIA's performance for the 18 months ended September last is substantially better than that of the previous 12 months. Sales, profits and margins are all much higher. Dividend has been stepped up from a mere 8 per cent to 21 per cent and is covered 2.4 times as against 2.11 times previously. Increased demand for the Company's products and better penetration of markets developed in recent years were the major contributing factors for the vast improvement in the working results. The chairman, P K Nanda, has a special word of praise for the employees, He says that trade unions in Calcutta have also responded positively to the needs of the company, which will enable it to pursue the essential task of restoring the viability of the units located in that city. Nanda hopes that the few areas that are still under negotiation will be soon covered. The remaining productivity arrangements, when finalised and fully implemented, and the long-term arrangements for wages, bonus and performance payments concluded in the last 18 months, should usher in a period of industrial peace. The company's major diversification project, the factory at Kharagpur for the manufacture of bearings, went on stream in August last, ahead of schedule. Production of bearings is expected to reach around two million in the first year of production. Plans to extend the range of machinery have met with success and is expected to become a viable activity before long. The new printing machinery project has reached its final stages. This, it is hoped, will enable the company to become an important and large manufacturer in the field of quality-printing machinery. The non-resident shareholders have completed an offer of sale of shares to the company's members as on November 15, 1979, The response to the offer, made on the basis of one share for every three shares held at a premium of Rs 2 per share, has been very goodAs at the end of December last, the non-resident shareholding stands reduced to 50.2 per cent. This will get further reduced to 38.6 per cent at the end of March next when the convertible bonds issued in 1978 are converted into equity in accordance with the terms of that issue. Commenting on the prospetes, Nanda says that if the rate of growth for consumer goods in the first three months of the year is maintained the company can look forward to another satisfactory year for the packaging business, an improved one for machinery and a substantial contribution to sales from hearings. lie points out, however, that the results will have to bear the burden of gestation costs of the now projects.

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