JK GROUP - AN EMPIRE LOST
Article Abstract:
The JK Group which was among the top 10 industrial groups in India has lost its competitive edge due to family feuds, unrelated diversifications and erosion in networth. Some of the group companies include JK Corp, JK Industries, JK Synthetics, JK Jute Mills Co and JK Cotton Mills Co. Its core businesses include tyres and paper. The group has also diversified into non-related businesses like cement, synthetics, pharmaceuticals, V-belts, magnetic tapes, dairy, sugar and agri-genetics. Its assets have fallen from Rs29 billion in 1994-95 to Rs23 billion in 1996-97. Funds raised from the public have been invested in group companies or in creating subsidiaries. The group has invested in 41 of its subsidiaries and group companies. JK Corp has made investments totaling Rs2990.4 million in 1997-98. JK Industries has invested about Rs4,031.9 million in 1997-98, a good part of it in JK Corp. JK Corp expanded the capacity of Laxmi Cement 0.6 million tonnes per annum (tpa) to 2.0 million tpa at a cost of Rs635 crore despite the glut in the market. Over capacity and unrenumerative prices resulted in a net loss of Rs386.5 million in the first quarter of 1998-99. JK Industries engaged in the manufacture of tyres ventured into pharmaceuticals. The pharmaceutical unit was later sold to another group company for Rs500 million. Accumulated losses of all JK group companies has exceeded their paid up capital and reserves. (uh)(vr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
EVEREADY INDUSTRIES (EIL)
Article Abstract:
Eveready Industries Ltd (EIL) owns and operates 24 tea estates with its plantations located primarily in Assam, Dooars and Darjeeling. During 1997-98, EIL acquired two new estates and these are projected to contribute two million kilograms (kg) of tea per year. while two of EIL's estates in Assam produce orthodox tea, the rest produce the crushed, twisted and curled variety. During 1997-98, EIL produced 24 million kg of tea (22.6 million kg in 1996-97). Around 75 percent of its production is sold in the domestic market while the rest in exported. EIL's margins for the second half of 1998-99 are projected to decline due to lower tea prices. EIL has two businesses namely dry cell batteries and tea plantation. (tsm)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic: