Trf Eyes O & M Deals In Material Handling Sector

TRF Ltd (formerly Tata Robins Fraser Ltd), a Tata Steel associate company, plans to enter the engineering services sector by providing services in the area of operation and maintenance (O&M) of bulk material handling plants and facilities.

According to the company's annual report for 1997-98, it completed the sale of its steel service centre assets at Bara, Jamshedpur, for a consideration of Rs 14 crore in favour of Tata Ryerson Ltd, also a Tata Steel associate, and Tata Steel. The shareholders' approval for the sale was accorded at the company's annual general meeting last year.

While machinery, equipment and other assets including tools and spares worth Rs 11.95 crore were sold to Tata Ryerson, Tata Steel paid Rs 2.05 crore for the transfer of factory buildings and structures, the annual report said.

 

The steel service centre was to be part of TRF's expansion plan but during 1996-97, Tata Steel entered into a collaboration with Inland of India Pte. Ltd, an affiliate of Inland International Inc, USA, for the promotion of a new joint venture called Tata Ryerson Ltd. Tata Ryerson was to undertake steel processing and distribution business by setting up material management centres which had then put in an offer to buy the TRF unit on a going concern basis.

As part of its on-going programme of technology upgradation and innovation, TRF has recently signed a memoranda of understanding with Tip-Top Saar GmbH, Germany, for acquiring state-of-the-art know-how for conveyor belt reconditioning plant and services including wear resistant linings for bulk material handling facilities.

According to the annual report, although activity levels and sales volumes in respect of execution of contracts and product sales recorded substantial increase, the margins were under pressure due to the increase in input costs.

The total income of the company during the year rose by 25 per cent to Rs 161.08 crore. Profit after tax was Rs 9.28 crore.

Due to the general slowdown in the economy, major infrastructure projects did not take off during the current fiscal.

As a result, the company's growth plans suffered during the year. However, at present, the company has an adequate order book, the report said.