Hind Paper Corp Pares Losses

Hindustan Paper Corporation (HPC), one of the 11 public sector undertakings marked for disinvestment, has maintained a steady growth in sales turnover in 1997-98.

Along with the subsidiary Hindustan Newsprint Ltd (HNL), HPC s turnover reached Rs 562.16 crore at the end of March last. Turnover growth was 3.43 per cent in 1996-97. The group s sales was at Rs 543.52 crore.

Supported by a restructuring plan, the group s combined net loss was kept at a low of Rs 2.99 crore against a projected figure of Rs 15.64 crore.

Actual loss was 19 per cent of the projected figure which is well within the target set in the memorandum of understanding reached between the company and the ministry of industry.

According to a company source, the loss could have been avoided had there been no provision made for arrear payments to the employees. HPC had provided Rs 8 crore for payment of wages which may have to be made in the event of implementing pay revision effective from January 1997.

In 1996-97 HPC earned a net profit of Rs 6.99 crore, while HNL s net profit stood at Rs 4.15 crore.

HPC and HNL together produced 2.33 lakh tonne of paper and newsprint during the financial year 1997-98, recording an increase of nearly four per cent over the previous year. Total sales stood at 2.28 lakh tonne, higher by 9.81 per cent over that of 1996-97. Sales include export of 1,448 tonne to Egypt and Saarc countries.

The production figure has to be viewed against the total installed capacity of HPC and HNL.

In the two HPC units at Nagaon and Cachar, the installed capacities together are two lakh tonne per annum, while HNL has another on lakh tonne per annum (tpa) capacity of newsprint.