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

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COLOUR-CHEM-Setback

COLOUR-CHEM Setback COLOUR-CHEM has suffered a setback in its working results during 1987-88 with a lower gross profit of Rs 6.55 crore against previous year's Rs 7.95 crore in spite of higher sales turnover of Rs 73.06 crore against Rs 66.83 crore. Net profit is also lower at Rs 2.99 crore (Rs 3.37 crore). If dividend has been raised by two points to 20 per cent, it reflects the managements confidence in the future. Even now, distribution is covered 1.88 times by earnings as against.2.36 times previously. Profit margins have been eroded by steep increase in the landed cost of imported raw materials. Sporadic shortages accentuated the increase in prices of essential inputs. Since the close of the year, shortages of such essential raw materials as butyle acrylate, styrene monomer, etc, have become endemic The implementation of the industrial licence held by the company for the manufacture of BON Acid, a dye intermediate, was completed during the year. The plant with an annual installed capaci ty of 300 tonnes has been commissioned successfully and the throughput and quality have been stabilised. This project will assure supplies of a vital intermediate of the required quality, of importance to the company's business in organic pigments. The efforts of the company to diversify its activities so as to reduce the excessive dependence on products for the textile industry are continuing. The project to manufacture more organic chemical intermediates involving complex technology is making steady progress. The turnover of the company during the first three months of the current year has recorded only a marginal increase over the corresponding period of the previous year. The chairman B M Ghia, however, feels that the timely onset of the monsoon is likely to improve demand for some of the company's products during the rest of the year.

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