ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Focus on Entrepreneurship

oriented unit for manufacturing customised hi-tech industrial gears and gear boxes at Bahadurgarh, Haryana, in collaboration with Quebec Gear Works (QGWL), Canada, is the only project of its kind in the Asian subcontinent. QGWI. which is providing comprehensive support to the company by way of transfer of technology and know-how, supply of plant and machinery on deferred credit and equity participation to the extent of 15.42 per cent of the company's issued capital, has also entered into an arrangement with the company to buy back Canadian $ 25 million worth of goods or 75 per cent of the production per annum whichever is less. According to the company's CEO, Pankaj Khera, in Canada the labour cost comes to 40 per cent of the total production cost, while in India labour cost does not exceed 8 to 9 per cent of production cost. The plant and machinery has been supplied from Canada on a five-year deferred credit basis. Installation and trial runs which will be done under the supervision of QGWL technicians is to commence shortly. The project costing Rs 14,62 crore has been co-promoted by Haryana State Industrial Development Corporation with 10 per cent (Rs 65 lakh) participation in the Rs 7 crore post-issue equity. To part finance the project the company will enter the capital market on September 6 with a public issue of 38,37,000 equity shares of "Rs 10 each for cash at par. The projections made by the company place turnover at Rs 525 lakh, Rs 1,080 lakh and Rs 1,260 lakh and net profit at Rs 205 lakh, Rs 424 lakh and 1995-96 respectively. The company expects

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