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

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GRASIM-Wide-Ranging Diversification

GRASIM INDUSTRIES, formerly Gwalior Rayon Silk Mfg (Wvg) Company, is further expanding and diversifying its activities. It has sucured a letter of intent for expansion of the cement plant capacity from one million tonnes to two million tonnes per annum. The company's application for industrial licences for manufacture of linear alkyl benzene (LAB) in AP and acrylonitrile in Gujarat are under consideration. The company has been registered with DGTD for the manufacture of glass shells for colour TVs. A memorandum of understanding has been signed with a Japanese company for obtaining technical know-how. The company is also planning to diversify into other lines, particularly in the fields of petrochemicals and electronics, and has applied for various industrial licences. During 1986-87, the company has been able to step up its turnover from previous year's Rs 402 crore to Rs 450 crore, but its gross profit could look up only marginally from Rs 34.19 crore to Rs 34.94 crore. Net profit dropped from Rs 13.34 crore to Rs 8.60 crore and unchanged dividend of 24 per cent is covered 1.61 times as against 2.54 times previously. This outcome is attributed by the management to substantial rise in the cost of inputs like coal, power, chemicals, railway freight and the continued increase in wages and dearness allowance.

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