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

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Ambalal Sarabhai

the quality of fabrics and to achieve better product-mix as also to reduce operating costs. It is also proposed to increase significantly the processing capacity of the mill. The company's application for manufacture of cloth out of 100 per cent synthetic/man-made fibre is pending government approval and is expected shortly. The metals, special alloy steels and hot rolled alloy steels division earned a profit during the year. The company's application for an industrial licence for manufacture of hot rolled steel strips for commercial sale is awaiting government clearance, STP Into Software STP, formerly Shalimar Tar Products, has diversified into the business of computer software and commenced operation under the name 'Renaissance Software'. It has already secured an order from a renowned US corporation for developing software. The company has also put up additional production facilities for corrosion protection materials in the Shalimar Tar division at Jamshedpur to meet competition. The management of the Shalimar Construction division is being reorganised for further growth. The value of outstanding jobs at the end of the last year was Rs 8.51 crore. The project division is actively exploring further areas of growth and diversification. Necessary plant modification has been completed for production of new products based on know-how obtained from the US and UK companies. The new products, however, could not be produced as planned due to delay in getting permission from DGTD and CC of I and E. The products are now planned to be introduced in the market during the current year. The company has produced good results for 1986-87 and the directors have proposed payment of a 15 per cent dividend on the capital doubled by a bonus issue. Sales have amounted to Rs 25.70 crore against Rs 25 crore in the previous year, but gross profit has expanded from Rs 81 lakh to Rs 150 lakh reflecting widening of profit margins. Net profit is Rs 76 lakh (Rs 36 lakh). The enhanced distribution is covered 5.84 times by earnings as against four times previously.

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