Wimco Set To Merge Two Arms With Seedlings

Wimco, the Indian arm of Swedish Match AB has decided to merge its two subsidiaries -Wimco Greenbelts and Gladhill Trading with Wimco Seedlings.

The board of the subsidiary companies has approved the scheme of amalgamation at its meeting held on January 12.

The company, manufacturers of the popular Ship brand of match boxes, has posted a net loss of Rs 45.35 crore for the year ended March 31, 2001 compared with a net loss of Rs 14.20 crore last year.

Wimco Seedlings, whose main activity includes the sale of saplings, has recorded a loss of Rs 52.64 crore for fiscal 2000-01. Last year, its trading in popular wood declined on account of lower procurement for both Bareilly and Kolkata factories of Wimco Ltd.

Wimco Greenbelts, a plantation company had wound up its smart unit scheme and has consequently become the owner of the tress.

The net loss of Gladhill Trading for the year on account of administrative overheads and miscellaneous expenditure in relation to the formation of the company is being written off each year.

The match box division, which accounts for 85 per cent of turnover of Wimco, has seen its revenues declining because of dwindling demand for matchsticks.

With stagnation in the match market, increased LPG connections leading to higher usage of kitchen lighters and increase in excise duty, the ongoing focus of Wimco is on improving its sales product mix for better realisation and profitability, reduce funds blocked in working capital more particularly raw material inventories and continue vigorously with measures to reduce indirect costs.