FINOLEX CABLES-Growth of Production

EPW Research Foundation FERRO ALLOYS CORPORATION Exports Looking Up INDI A'S largestmanufacturer of ferro alloys and producer of quality steel, Ferro Alloys Corporation (FACOR) has been in the red for the past four years. Rising cost of production and stagnant or falling prices in the world market, coupled with severe competition both in the international and domestic markets, and lower realisation and heavy burden of interest charges amounting to Rs 26.83 crore contributed to the adverse situation. The ferro alloys industry suffered a blow with the break-up of USSR. Also China's emergence as a ferro alloy exporter further increased competition and dampened prices. Mushrooming growth of small units has resulted in over-supply and sharp price cutting. Net sales rose marginally by 0.44 per cent (Rs 1.33 crore) but operating profit fell by 74 per cent (Rs 20.85 crore) and net profit by 106 per cent (Rs 10.21 crore). Depreciation was lower by Rs 2. 01 crore, while interest charges rose by Rs 2.54 crore. Other income was down by Rs 5.71 crore, while non-operating surplus rose by Rs 1.18 crore. Exports and imports fell by 20 percent and 22 per cent, respectively.