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

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Free of FERA

Free of FERA Hansavivek DUNLOP INDIA is no longer subject to restrictive aspects of FERA. With completion, in December last, of the two-stage conversion of the convertible part of company's 13.5 per cent secured convertible debentures. Indian shareholding in the company has increased to over 60 per cent. The com pany continues its phased programme of modernisation and energy conservation. This programme is supplemented by ongoing expansion into new and improved product lines, such as steel cord conveyor belting, new varieties of industrial adhesives, large diameter hoses, specialist automotive and industrial Vee belts, radial tyres for new motor cars, ultra-large tyres for off- the-road vehicles and an increase in production volume of tyres for scooters and motor cycles. Sales have declined from the previous year's Rs 244,52 crore to Rs 239.03 crore, and gross profit from Rs 15.33 crore to Rs 14,37 crore These figures also show reduced margins. With both depreciation and taxa tion requiring more, net profit has tumbled, from Rs 9.64 crore to Rs 5.70 crore. Dividend is maintained at 20 per cent on increased capital and is covered 1.77 times against 3.19 times previously. The volume of tyre production was marginally lower than in 1982, owing to lower demand for truck tyres and production disruptions on account of power shortages at Ambattur in the first half of the year, A number of new products were introduced in tyres notably for Maruti car, power plus high performance truck tyres, and nylon tyres for motorcycles and scooters. Modernisation of plants continued, with installation of additional Bag-O-Matic presses for car, light trucks and motor cycle tyres, Production of industrial products increased marginally. A new plant for the production of industrial hoses was commissioned and high pressure hydraulic hoses were added to the expanding industrial products range. Escalation of electricity costs continu- ed with tariff increases and increased need for captive electrical generation at both Sahaganj and Ambattur. Poor quality of coal remains a problem. Domestic rubber prices rose to high levels because of delay in import and distribution of rubber. Increase in import duties, imposition of additional excise duty on rayon and nylon tyrecord. and higher administered price of coal, have increased costs. The company also had difficulties in getting supplies of certain key materials due to industrial relations problems at the suppliers' factories. Tyre market felt the impact of a slackening of road transport activity, and competition on prices was intense. Turnover for tyre products declined by 8 per cent from 1982. mainly with lower selling prices of truck tyres. Government reduced excise duty rates on certain categories of tyres in October last and the reduction was to be passed on to consumers. In line with the company's commitment to provide better service to consumers, Dunlop Tyres Service Centre network continues to be extended. Four new centres were The Week's Companies (Rs Lakh)

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