Restructuring for strategic focus

This move will have a marginal impact of not more than 10 per cent to 15 per cent reduction in the company sales turnover, as core products for this business such as heat exchangers will still be supplied by Alfa Laval. The amount utilised from this sale will be utlised for the expansion and modernisation of manufacturing facilities for the core business which will improve the profitability of the company, she said. TTPS catering to the dairy and liquid food industries accounts for about 20 per cent of the company’s total turnover of which about 10 per cent comes from the core products of the company.

The company has fared well on the export front during the period under review. While the take-off of separators and decanters by group companies increased substantially, exports to Asian and African markets continued. The company also made inroads into Japan and Middle East markets for export of spiral heat exchangers and process equipment. Exports for the period ended December 31, 1998 were at Rs. 261.1 million as against Rs. 256.3 million in the previous financial year. The company expects exports to the tune of Rs. 40 crore by the year 2000 AD. The company has already written off Rs.12.5 million in the VRS scheme. The VRS offer will stop on May 1, 1999. Managing director Satish Tandon said that although the company presently has about 760 people, he expected the number to come down to 710 people.

Sales turnover and other income for the period under review was at Rs. 1368.1 million (1997-98: Rs. 1,853.4 million). Though the sales and services registered a marginal growth of about 2 per cent on an annualised basis, operating profit before interest, depreciation and tax was Rs. 174.4 million as against an operating profit of Rs. 163.4 million in the previous financial year. After providing Rs. 11.1 million for interest, Rs. 37.3 million for depreciation, Rs. 29.6 million for extraordinary item, Rs. 25.4 million for dimination in value of investments and Rs. 11 million for taxation, the net profit for the period under review was Rs. 60 million as against Rs. 32.2 million for the previous year.