MOULDED FURNITURE: GOING GOOD. BUT FOR HOW LONG?

Article Abstract:

The moulded furniture industry posted a 35 percent sales growth in 1997-98 (30 percent in 1996-97). The two main players in this sector are Wimplast and Prima Plastics. The net profit margin of Wimplast rose to 22.6 percent in 1997-98 (12.7 percent). The industry has lower debt to equity ratio against 2:1 norm for the manufacturing sector. The debt-equity ratio of Prima Plastics is at 0.31 and that of Wimplast is at 1.08. Wimplast has earned more than Rs176 million as cash profit over the past three years. Exports account for 8 percent of Prima Plastics' turnover. The raw material, polypropylene is readily available with the commissioning of Reliance Industries plant. Earlier the raw material was imported. The demand for the moulded furniture has increased due to high cost of wood and steel furniture. The decline in prices of polypropylene has made plastic furniture affordable. The industry pays 18 percent of the selling price as excise duty. The unorganised sector accounts for 5 percent of the moulded furniture industry. The organised sector has sought reduction of excise duty to 10 percent. Prince Plastics, Brite Plastics, Polyset and Garden Plastics plan to foray into manufacture of moulded furniture shortly. Prima Plastics plans to install four to five machines in April 1999. Supreme plans to set up a second plant with 20 machines in Pondicherry. Nilkamal has set up a plant at Pondicherry. (rk)

Market information - general, Plastic Materials, Plastics Material and Resin Manufacturing, Unsupported Plastics Profile Shape Manufacturing, Molded Plastic Products, Plastics, Molded plastics, Prima Plastics, Wimplast

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GTC INDUSTRIES

Article Abstract:

GTC Industries has two cigarette manufacturing units at Kanpur and Tamil Nadu and produces brands like Panama, Chancellor, Harvard, Luxury, Baton, Flair, Style, Legend and Esquire. Cigarettes which have a length of less than 70 mm account for 87 percent of its sales volumes. The company has posted a loss of Rs227 million for the 18 months ended March 1998. The company has accumulated losses of Rs904 million as on March 31, 1998. It has been referred to the Board for Industrial and Financial Reconstruction as its net worth has almost been eroded. (khr) >EN

Comment:

Has 2 cigarette mfg units at Kanpur and Tamil Nadu & produces brands like Panama, Chancellor, Harvard and Luxury

Strategy & planning, Cigarettes, Cigarette Manufacturing, Article, GTC Industries Ltd.

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