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

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Over to High Technology

Over to High Technology Hansavivek INDIAN OXYGEN has fared well during the year to September 30 Jast, with increase in sales from previous year's lis 70.55 crore to Rs 83.49 crore, and increase in gross profit from Rs 11.68 crore to Rs 14.13 crore. These figures also reflect increase in profit margins. Net profit was Rs 5.35 crore (Rs 3.35 crore), raising its ratio to capital employed from 10.41 per cent to 15.14 per cent. Dividend has been maintained at 20 per cent on the capital enlarged by a 1:4 bonus issue, and is covered 2.44 times by earnings, against 2.04 times previously. This good performance, according to Managing Director Sat Dev Singh, has followed actions initiated in the last couple of years to identify key areas of management concern, which led to concerted efforts to obtain results. Higher turnover apart, changes in product mix, with an emphasis on higher value-added items led to increase in profit. To provide integrated service to medical profession, a Health Care Business Group was created combining medical gases, equipment and accessories. Steps have also been taken to upgrade existing products, widen product range, and strengthen after-sales service. Additional facilities were set up in Cryogenic and Process Plant division to improve deliveries. Also, new products and technology were introduced to strengthen the company's position in the market. A new R and D centre, with the most modern facilities and instrumentation, has been set up at Calcutta. With a view to manufacturing continuous weld- ing consumables and submerged arc welding fluxes, the Industrial Development Corporation proposes to promote a company in Orissa jointly with the company. The company proposes to invest in the new company Rs 31 lakh by subscribing for 3.10 lakh equity shares of Rs 10 each at par. Commenting on Indian Oxygen's prospects, Singh says, in his annual review, that recent changes in government policy, particularly those relating to the com pany's business, give reason for continuing optimism. The company's growth strategy' in the coming years will centre around exploiting the distinctive competitiveness the company has in areas of technology and management. The thrust will be to develop new applications and shift to high technology areas. The management has identified opportunities in the priority areas now available to large industrial houses and for which the company has expertise, resources and managerial capabilities. To implement these, the company can draw upon resources available within the BOC group.

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