Far-Ranging Diversification

Far-Ranging Diversification Hansavivek INDIAN OXYGEN submitted in February 1971 a comprehensive expansion plan for the next few years, envisaging additional investment of capital and major diversification of the company's activities. Several among the proposed new activities are not directly related to existing manufacturing facilites and products and in many of them there is no indigenous technical knowhow available. In order to expedite government clearance, the management has grouped the projects covered by the plan into separate phases. Government decision in respect of projects included in the first phase is being sought immediately. The parent company, British Oxygen, holding a little over 66 per cent interest in the Indian company, has agreed to forego The Week's Companies its rights in respect of a further issue of shares by the company so that its shareholding can be reduced to an "acceptable lever'. N Dandeker, who has since relinquished office as chairman and director under medical advice, has observed that over-capitalisation of the company at the risk of having to Scale down the rate of dividend can serve no useful purpose. He has advocated that this consideration should also influence the other facets of government policies relating to capital issues, including conversion into equity of loans advanced by financial institutions.