Versatility Pays

Versatility Pays Hansavivek VOLTAS has secured a letter of intent to manufacture upto one lakh refrigerators per annum. The plant is intended to be located at Warora near Nagpur. Plans to manufacture a series of modern hydraulic truck cranes have also moved forward rapidly, and the first batch of these products will be available soon. Several new products are being added to the range of Thane works, where the first computerised numerical control machining centre has been installed. A phased programme has been drawn up to replace old machines over the next few years and new assembly and manufacturing lines are being planned in many areas. The company is seeking permission of the state government to shift the motor and transformer plant from Lalbaug in Bombay to Thane in order to improve productivity levels by introducing improved technology. The switchgear plant recommenced production on August 17, 1982, after over a year's lockout. Plans for vitalising these operations are under way. Besides, the company has identified pollution control as having profit potential. The management's intention is to attain leadership in the environmental protection field through treatment of noxious discharges into air or water or onto land. The company has produced good results for the year ended August 1982, with increase in sales from the previous year's Rs 260.06 crore to Rs 280.65 crore, followed by a gross profit of Rs 11.26 crore against Rs 9.76 crore. These figures also show enhancement of profit margins. With both depreciation and taxation claiming more, however, net profit has turned out to be lower at Rs 3.92 crore (Rs 4.10 crore). Dividend has been raised by a point to 21 per cent, and is covered 2.37 times by earnings, as against 2.61 times previously. This performance is in sharp contrast to that of five years ago, when Voltas profits had slumped to a mere Rs 10 lakh. The management had then taken a hard look at the company's problems and also at its opportunities, and had identified specific directions in which it should develop. Since then there has been a steady progress. In the past few years, the company has rewarded shareholders with increasing returns through higher dividends and a bonus issue. A II Tobaccowala. Chairman, hopes that the journey ahead will be an exciting one and that while moving forward the company will even better serve them, employees, customers as well as the community at large.