Mico To Set Up Manufacturing Unit In Jaipur

Bangalore-based Motor Industries Company Ltd (Mico) of the Bosch group, is setting up its fourth manufacturing unit near Jaipur after shelving its initial plans for locating it at Baroda.

The company has surrendered the land at Baroda allotted by the Gujarat Industrial Development Corporation. It has now entered into a memorandum of understanding (MoU) with the government of Rajasthan to set up the Jaipur unit.

The company has been allotted 50 acres of land at Sitapura near the pink city.

Mico plans to replace the carburettors of petrol engines by electronically controlled petrol injection systems.

The company plans to introduce petrol injection systems in its product range.

 

The companys profit before tax (PBT) declined to Rs 10.75 crore as against Rs 11.03 crore in 1995.

As a result, the percentage of profit on turnover dropped from 11.8 per cent to 9.2 per cent.

Mico attributed the decline to a `discouraging growth in the automotive sector. However, it registered profit after tax (PAT) of rupees six crore as against Rs 5.26 previously.

The companys turnover increased by 25 per cent to Rs 116.36 crore. Export sales were Rs 14.17 crore, an increase of 47 per cent over 1995.

Addressing shareholders at the companys AGM yesterday, chairman Zimmerror said Micos management has taken up two important tasks to ensure adequate returns on turnover. This will comprise of improving the productivity of manpower and better utilisation of machines.

For the current calendar year, sales between January and May 1997 have gone up by 24 per cent over that of the corresponding period last year.

Mico has recommended an increased dividend of Rs 24 per share as against Rs 22 per share last year.

We need to pursue a cautious dividend policy to retain our financial strength both for investment needs and a possible downturn in our earnings in the coming years, the chairman said.

Last year, Mico broke ground for a new location for its software centre in Bangalore. This facility became operational in the fourth quarter of 1996.

Micos three plants are located at Bangalore, Nashik and Naganathapura near Bangalore.