A Share of Automobile Boom

A Share of Automobile Boom Hansavivek KELVINATOR OF INDIA is establishing a moped factory in collaboration with Agrati-Garelli, Italy. It has already commenced production and sale of scooters at the factory of erstwhile ASV, since amalgamated with it. Company has in hand further expansion and diversification projects, which it is pursuing. As a result of R and D efforts, it has introduced a 2-door deep freezer-cum-refrigerator, which has heen well received in the market. Company has suffered a setback during the year ended June 1983 due to recession in the consumer durables industry. Although sales increased from Rs 49.08 crore to Rs 54.67 crore, gross profit slipped to Rs 4,73 crore from previous year's Rs 6.07 crore, reflecting heavy pressure on margins. Net profit is also lower at Rs 2.32 crore (Rs 3,26 crore). Unchanged dividend is still covered 5.80 times by earnings, but last year distribution had a hefty cover of 8.34 times. Production of refrigerators was substantially higher, but value of receipts lagged behind. Moreover, company extended credit covering sale of refrigerators and spent considerable funds on establishment and operation of scooter plant, advertising and establishment of a dealer network on country-wide basis.