Modernising on Solid Base

Modernising on Solid Base Hansavivek METAL BOX INDIA has embarked on a major programme of modernisation and is discussing its details with financial institutions. It has also made substantial investments in the paper packaging business and machinery factory to balance capacities and improve product range. It is hoped that the modernisation programme will ensure long-term profitability of the packaging business, which will remain the Company's largest activity. Strong foundations have been now laid for the other businesses also to make their contribution. The current year started badly, with inadequate stocks and supply of raw materials for the packaging business and somewhat reduced demand. However, the demand has now firmed up and raw materials have also started to flow in, although low indigenous production of tinplate and delays in shipments continue to cause anxiety to the management. So does the lack of liquidity. Improved production of bearings, where most teeth ing problems have been resolved, should reduce gestation costs. Plastics operations at Calcutta, on the other hand, are expected to remain a heavy drain on profits. Although, in this background, the immediate future can be viewed only with some caution and uncertainty, P K Nanda, chairman and managing director, believes that a degree of stability in profits can be achieved. The key to that, . according to him, will be cordial industrial relations and continuing intensive efforts in productivity.