Forex Reserves Up By $193 M

Growing sparkle

Mico is gearing up to get a bigger slice of the auto components market. It is widening its product portfolio, carrying out product developments, improving operating efficiency, enhancing share of exports in turnover and beefing up its presence in the replacement market. What is striking is that it is taking up the development responsibility for a number of products that will enhance export income and its strategic importance in the global scheme of the Bosch group.

In 1998-99, Mico's volumes fell in two key products -- fuel injection equipment and spark plugs -- which saw sales decline by 5.5 per cent to Rs 1,298.17 crore. The consolation was that it managed to hold on to its export turnover at Rs 199 crore. The recovery in domestic production in the current fiscal will obviously see sales of its products recover. Its efforts to trim costs will, however, bring bigger gains.

 

Last year, process improvements led to savings of Rs 2.2 crore. Benefits derived from in-house research and development led to reduction in fuel consumption and emission of diesel engines, development and application of products for local and export markets and indigenisation of components and materials.

It is even setting up a modern application development centre that will be operational by mid-2000 for applications in electronic diesel control, auto electricals and support applications of petrol injection systems. Its new plant at Jaipur will cater to expected growth in the rotary diesel injection pumps in India from year 2000 and exports. Among others, it developed a new nozzle which has been approved for exports, small light weight starter motors for, both, exports and domestic markets.

Mico has plans to produce the Blaupunkt range of car stereos which it was importing hitherto. It has hiked by 59 per cent the number of outlets in the replacement market which should show results in the future.

Avery India

High other income has enabled Avery India to show a respectable performance in 1998-99, which was severely affected due to the economic slowdown. Other income of Rs 2.46 crore contributed around 50 per cent of the PBT, compared to Rs 1.58 crore in the previous year.

Its other income increased as the company's cash rich position was further boosted by a preferential allotment to foreign promoter GEC Avery International generating Rs 8.90 crore. This enabled Avery to maintain a zero debt position for the fifth consecutive year despite the fact that its working capital requirements increased during the year. Net cash flow from operating activities was a negative Rs 97.69 lakh compared to R