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

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WIMCO-Environment Friendly

EPW Research Foundation ZENITH Recovery Stalled ZENITH which has entered into such diverse activities such as the manufacture of pipes, special steels, chemicals, paper, tools and textiles, has gone deeper into the red in 1992-93 following the delay in implementation of the rehabilitation package forwarded to ICICI. Though the company managed to improve net sales by 31 per cent over the previous year, the sharp rise in operating expenses, mainly manufacturing costs which accounted for up to 80 per cent of value of production as against 75.4 per cent last year, led to an 8 per cent fall in operating profit. The fall in the profit was due to an extraordinary expense towards gratuity and other compensation given to the employees of Sion plant on its closure. The interest, though steady, is still quite high and accounted for up, to 11 per cent of net Sales in 1992-93 leading to a net loss of Rs 22.5 crore. The severe competition coupled with the recessionary trends in the market affected the company's margins. By diverting the limited working capital available as also due to the improved availability of hot rolled (HR) coils in the second half of the year, the company managed to iprove production and sale of the pipes division from 23,289 mt and 22,997 mt, respectively, to 43,909

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