Boom World of Gadgets

Boom World of Gadgets Hansavivek INDIAN SEWING MACHINE COMPANY, which look over business and undertaking of the Indian branch of Singer Sewing Machine Company, USA, with effect from the beginning of 1980 by an order of the Bombay High Court, has a share capital of Rs 2 crore in equity shares of Rs 10 each. By directives issued by RBI and other concerned government authorities, 8 lakh shares were allotted to the US company, 6 lakh shares to National Small Industries Corporation, one lakh shares to employees, directors and business associates, and 5 lakh shares to the public through a prospectus. The public issue was oversubscribed. The company's traditional lines of business have been sewing machines and relas ed accessories, knitting machines, needles, etc. The management has decided to increase the number of household appliances sold through various marketing channels. It has introduced electric irons and a kitchen gadget with eight attachements for food processing called 'Lady Chef. The company has fared well during 1981 with rise in turnover from Rs, 14,41 crore in the previous year to Rs 16.28 crore and a gross profit of Rs 112 lakh against Rs 72 lakh. These figures raflect an increase in profit margins too . Net profit is Rs 31 lakh (Rs 19 lakh). Dividend has been raised from 8.5 per cent to 10 per cent and is covered 1.55 times against 2.43 times previously. Allotment of shares to the public was completed on March 31, 1982, but the shareholders will participate fully in the "dividend for 1981 in terms of the public issue. This outcome has followed, though the company had to contend with generally depressed economic conditions and continued instability in Eastern India during the last three months of the year. The directors feel confident that overall progress at ained in 1981 would be continued during the current year.