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

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FACOR-Higher Dividend

GEC Pressure on Margins GENERAL ELECTRIC COMPANY OF INDIA (GEC) wants to disinvest a part of its 33 per cent shareholding in Genelec. The company's application for a 'no objection' on two occasions to the Department of Company Affairs has not been granted. The directors are exploring all possible avenues and hope that ultimately the company would succeed in its endeavour to disinvest, The transformer division registered an increase of about 20 per cent in the value of its sales. The switchgear division has shown an improved sales performance. There was a pressure on margins because of an increase in customs duty, an unprecedented upward variation in the Rupee/Pound exchange rate, and the depression in the mining sector. The motor division increased its sales, especially to industrial customers. However, because of increases in the administered price of raw material inputs such as copper, aluminium, pig iron and steel components, margins were eroded. The air control division recorded a turnover growth of 20 per cent despite some delay in introducing axial flow and centrifugal fans of new designs in collaboration with Woods, a GEC company in the UK. This product line offers a major growth potential for the division. The furnaces business faced an increase in the number of competitors, particularly for smaller furnaces. This put a new pressure on margins.

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