Growth through Diversification

October 7, 1978 CITU activists who had been retrenched under the previous regime in the state.
One of the turbines at Jaldhaka may be from Japan, but that does not alter the fact that power generation by the plant has been only a fraction of its capacity. The CESC boilers had outlived their normal life-span some 20 years ago. Anyone who has visited the Metiaburuz and Mullazore power stations will not need any convincing that the company has no intention of re placing its overage boilers. There has been a sizeable fall recently in the generation at the CESC plants. As for Gouripore, the WBSEB in its budget estimate for 1976-77 had itself said, "Installed capacity of turbines at Gouripore is 35 MW. Derated capacity is 24 MW. After repair, the same has been uprated to 27.5 MW but would go down again due to defective condenser tubes. Present capacity of boilers is only 20 MW." August 23, 1978] COMPANIES Growth through Diversification Hansavivek LARSEN AND TOUBRO is diversifying into manufacture of cement. It has decided to establish a plant with an annual capacity of one million tonnes, probably in Chandrapur district, a 'backward' area of Maharashtra, which has good limestone deposits. The company will itself manufacture the plant according to the design of F L Smidth and Company, its collaborator in the production of cement machinery for many years. The plant, which will incorporate the latest technology, is expected to be commissioned in 1982 and will require an investment of Rs 60 crores. The finance will be provided from internally generated funds, borrowings and additional share capital, if required. The company is also putting up a light Engineering workshop at Ahmednagar in Maharashtra and expects to commence construction of the buildings this year and production during 1980. Meanwhile, the company's planning and development department is engaged in identifying on an on-going basis new- business opportunities. The new chairman. N M Desai, observes that diversified product lines have been the dompany's safeguard, but 'competition is now becoming severe. He however is fully optimistic about the further growth of the company. He feels that with the government's emphasis on irrigation, power generation, petroleum, fertilisers, cement and other core sector industries, there will be business for the products of the L and T group.