Elphinstone Mills of the Ja- lan Group are modernising their equipment fairly .... at
Nagda for the years from 1957 to 1959. By the end of i960, the company.
THE ECONOMIC WEEKLY
road roller has been developed A 2 2 0 K V h i g h tension transmission tower for horizontal configuration of conductors has also been successfull y designed,
Elphinstone Mills THE
Elphinstone M i l l s of the Jalan G r o u p are m o d e r n i s i n g t h e i r equipment f a i r l y r a p i d l y . T h e Chairm a n , S h r i N K Jalan, has reported to shareholders that m a n y new items of s p i n n i n g a n d other processing equipment nave been installed and m o r e have been ordered. T h e m i x i n g r o o m has a m o d e r n p l a n t n o w ; 12 new c a r d i n g engines have been installed and 1 0 new N M M r i n g frames have replaced o l d spindles. Together w i t h the super h i g h d r a f t spindles erected in 1956, this new equipment has helped to reduce its costs. A larger q u a n t i t y of finer y a r n is being manufactured w i t h the help of 4 new combers w h i c h have been added to the 8 combers w h i c h the m i l l s had earlier. A n applicat i o n has been made f o r the i m p o r t of 2 more combers.
June 25, 1960
to lakhs to Rs 20 lakhs, but tax p r o v i s i o n declined f r o m Rs 12 lakhs to Rs 9 lakhs. Net earnings have, consequently, gone up substantially f r o m Rs 4 l a t h s to Rs 11 lakhs. E a r n i n g on net w o r t h and c a p i t a l invested is 8 per cent, w h i l e net e a r n i n g per equity share is Rs 37. D i v i d e n d is Rs 35 gross against Rs 25 net plus a bonus issue of 1 share f o r 2 in the previous year. The c o m p a n y spent Rs 10 lakhs on expansion of fixed assets d u r i n g the year and reduced its i n v e n t o r y by an equal amount. T h e m a i n items covered by this expenditure i n c l u d e d new combers, a soaping machine, a vertical d r y i n g range, an automatic d y e i n g j i g g e r , an automatic water softening p l a n t , a h u m i d i f i c a t i o n plant and new ducts and risers f o r loomshed.
Raymond Woollen
Raipur Manufacturing
' T H E sales o f R a y m o n d W o o l l e n o f the J K G r o u p rose in 1959 f r o m Rs 201 lakhs to Rs 244 lakhs, and gross p r o f i t m a r g i n on them i m p r o v e d f r o m 15 to 18 per cent. O w i n g to higher tax liability, however, net earnings have gone up only slightly to Rs 16 lakhs, which represents 8 per cent on c a p i t a l i n vested and 13 per cent on net w o r t h . Net earning per e q u i t y share is Rs 19, the same as in the previous year, but d i v i d e n d has been raised fractionally f r o m Rs 8 net to Rs 11.50 gross. Gross capital f o r m a t i o n d u r i n g the year was Rs 4 lakhs, consisting of an increase of Rs 11 lakhs under fixed assets and a decline of Rs 7 lakhs under i n v e n t o r y . Prices of wool tops showed an u p w a r d tendency d u r i n g the year but the company had fortunately covered a substantial p a r t of its requirements earlier in the year, when prices were comparatively lower. E n c o u r a g i n g results have been obtained f r o m experiments on the use of indigenous wool in the manufacture of certain varieties of worsted suitings. A plant for c o m b i n g of domestic wool is l i k e l y to be set up f o r this purpose w i t h Government help.
A N O T H E R company i n the Kashirb h a i G r o u p , R a i p u r Manufact u r i n g , w h i c h produces fine cotton fabrics, increased its sates in 1959 f r o m , Rs 162 lakhs to Rs 187 l a k h s ; gross profit m a r g i n on them i m p r o v e d slightly f r o m 12 to 13 per cent. Profits before tax went up f r o m Rs
T h e company's products are bei n g well received i n foreign markets, i n c l u d i n g the M i d d l e East, A f r i c a and the Continent. Orders have also been received f r o m abroad t h r o u g h the State T r a d i n g C o r p o r a t i o n . U n d e r the special e x p o r t p r o m o t i o n scheme f r a m e d for the w o o l l e n i n d u s t r y , the
An i m p o r t licence has been secured f o r a B a r b a r - C o l m a n w i n d i n g and w a r p i n g machine, order for w h i c h has been placed. T h i s w i l l i m p r o v e the q u a l i t y of y a r n prepared for weaving. A h i g h speed sizing machine w i l l a r r i v e shortly. Government permission has been received for installation of 48 automatic looms for replacement purposes. On the processing side, two semiautomatic j i g g e r s for c l o t h d y e i n g and a jet stenter of the latest model are under erection. Orders have been placed abroad for a mercerising machine, a c r o p p i n g and shearing machine and, locally, for a backfilling machine. T h e Leather Cloth D i v i s i o n has made considerable progress. Its prod u c t i o n in 1959 was double that in 1956, and w i l l be increased further in the current year. The products of this D i v i s i o n have established themselves in export markets. Its equipment is also being modernised and new qualities are being produced.
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company is entitled to i m p o r t licences for r a w materials to the extent o f 7 5 per cent o f the f o b value o f goods exported and a further 10 per cent for dyes a n d essential spares.
Bharat Commerce THE
w o r k i n g of Bharat Commerce & Industries of the B i r l a G r o u p i n 1959 has succeeded i n b r i n g i n g d o w n the accumulated loss f r o m Rs 23 lakhs to Rs 4.55 lakhs. Sales d u r i n g the year fetched Rs 124 lakhs against Rs 113 lakhs a n d earned an over-all p r o f i t of Rs 19 lakhs. An a d d i t i o n a l Rs 6 lakhs was p u t into fixed assets d u r i n g the year and a further Rs 1 l a k h in i n v e n t o r y . No provision for deprec i a t i o n has, however, been made in respect of the rayon s p i n n i n g plant at Nagda f o r the years f r o m 1957 to 1959. By the end of i 9 6 0 , the company w i l l have 30,000 r i n g spindles a n d 14,064 d o u b l i n g spindles. T h i s expansion, estimated to cost Rs 40 lakhs, w i l l be financed w i t h a loan of Rs 35 lakhs from the U n i t e d C o m m e r c i a l Bank under the Refinance C o r p o r a t i o n scheme. In addit i o n to increasing the capacity of the plant of the Nagda p l a n t , "a couple of other schemes" are also under consideration.
New Great Eastern THE
w o r k i n g of New Great Eastern S p i n n i n g and Weaving has i m p r o v e d considerably since its new management took over in September last year, when the Bradys resigned as managing agents, and the D a m a n i Jain interests took over. T h e accumulated loss of Rs 13 lakhs after adjustment of reserves at the t i m e of transfer of management was brought d o w n lo Rs 11 lakhs by the end of 1959, thanks to p r o f i t on the sale of chemicals. T h e share of exports in total sales has increased f r o m 24 per cent in September 1959 to 59 per rent in M a r c h 1960. Further possibilities in this d i r e c t i o n are being explored to derive f u l l benefit from official export incentives. A m o n g other schemes which the new management has in hand are modernisation of s p i n n i n g equipment, retrenchment of labour found surplus even after the opening of a t h i r d shift, and arrangements for dyeing cotton and yarn within the mills. An application for a loan has been made to the N I D C and Rs 15 lakhs has been raised f r o m banks against a mortgage.
