Bright Brothers

A bulk of the revenue, almost 37 per cent, came from the automotive segment, while consumer electronics and durables accounted for another 32 per cent of sales. The new product-lines of household items and office systems accounted for the remaining 31 per cent.

In contrast to last year when project delays had eroded margins, stringent expenditure control has resulted in margins at the operational level improving from 11.94 per cent to 14.85 per cent.

However the increased utilisation of working capital limits, a lease exposure for two new machines and a term loan for the Haryana unit in Gurgaon, have increased the interest burden 64.64 per cent to Rs 4.78 crore. Additions to the gross block have also resulted in increased depreciation charges, which together with the high interest costs have eroded the earnings growth of the company. As a result net profit at Rs 2.69 crore, also could not surpass projections made in 1994.

 

However optimism for the future springs from the fact, that in recent times it is the moulded plastic manufacturers for original equipment which have seen a 25 per cent demand growth for car parts.

Furthermore the expansions at Tarapur and the new facility at Gurgaon, has also resulted in a captive capacity of almost 7750 tpa for Bright.

The company also strengthened its plastic office furniture business with a licence and a buy back arrangement with Provenda Marketing AG of Switzerland. With the Swiss company providing the product design and the quality assurance through the licensed use of the brand name, Bright has plans to tap the Asian and South Asian export markets.