Assambrook Going For ArmsRecast

Assambrook has decided to rationalise the working of its wholly-owned subsidiaries by next year.

The company has three subsidiaries: Assambrook Exports Ltd, Assambrook Investments and Vineet Udyog (which manufactures marble tiles at Udaipur).

"Although no specific strategy has been decided as yet, it would be pertinent to refocus our strategies for each of these companies, particularly for the investment and export firms," said Siddharth Rampuria, director of Assambrook. "Refocussing on core competencies would be the major objective of restructuring," he added.

Almost 21 per cent of the loans and 60 per cent of advances of Assambrook have been made to its subsidiaries.

 

This loan which amounted to Rs 1.06 crore was an outstanding amount from its subsidiary, Vineet Udyog Ltd. Assambrook has made an investment of Rs 1.28 crore in the equity capital of the subsidiary.

Rampuria said that the total loans and advances this year were, however, lower than that of last year. "The major portion of this debt has been repaid and the rest of the outstanding amount would be paid up in another year's time, and we are in the process of making our subsidiaries more independent," he added.

It recorded an increase in its other income by almost 20 per cent. This was mainly accounted for by the profit accrued on sale of fixed assets.

The company has closed the year with a sales turnover of Rs 32.84 crore in 1995-96 compared with Rs 27.24 crore in 1994-95.

It posted a net profit of Rs 1.68 crore against Rs 1.10 crore in 1994-95.

Assambrook has entered into an exclusive agreement with National Agricultural Marketing Federation (Nafed) for marketing its Mahak brand in the north and central Indian markets.

The company has identified six centres for this purpose.

The company under this agreement would supply its blended teas in polypacks to Nafed which will reach it to various co-operatives in the various states.

sA trial marketing has already been conducted forfour centres up to now. The company intends to withdraw its present brand Mahak from the daily market in phases in order to supplement its teas to Nafed.

Cashing in on the wide distribution network of the apex marketing body, Assambrook will be able to save on huge expenditures made towards advertisement for running a particular brand, said Rampuria.

This would be for the first time that a particular company's tea would be sold by Nafed apart from its dealing with food grains, pulses, oilseeds and horticulture crops. Assambrook stepped up its exports by per cent over the last one year.