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

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Hitkari Fibres

project has reached an advanced stage and is scheduled to be commissioned in January 1988, The licensed capacity of 2,000 MTPA ABS Plant has been re-endorsed to 5.000 MTPA under the scheme of minimum economic size and steps are in progress to implement the expansion. Implementation of the letter of intent for manufacture of 2000 MTPA of polyvinyl alcohol is also under active consideration. The government decision is still awaited on the company's pending ap plications for letters of intent to establish large size downstream projects for styrene, polystyrene, propylene oxide, glycols and polyols as part of the proposed Gujarat Petrochemicals Complex at Hazira. These applications are being actively followed up. Meanwhile, the company has experienced a marked contraction of margins as reflected in a decline in gross profit from previous year's Rs 6.27 crore to Rs 5.58 crore despite increase in turnover from Rs 49.46 crore to Rs 55.32 crore. With depreciation claiming less than in the previous year, net profit has turned out to be a shade better at Rs 4.01 crore (Rs 4 crore). Equity dividend is maintained at 25 per cent on the capital enlarged by a one-for-two bonus issue and is covered 4.31 times by earnings as against 6,55 times previously. Modernisation schemes for product improvement, energy savings and higher process efficiencies at the styrene plant, polystyrene plant and ABS plant made satisfactory progress during the year. Bench scale research into development of polyvinyl alcohol grades of commercial importance yielded encouraging results. Test market response to the styrene based speciality products has been steadily increasing. Dow Chemical, the foreign collaborator has divested its shareholding in the company on May 27, 1987 after receiving approval of the concerned authorities.

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