Widia Gmbh Head To Join Indian Unit Board

Winfried Hag, the chairman of Widia Gmbh, Germany, plans to join the board of Widia (India) Ltd, the Bangalore-based machine tools company. Hag will replace Muller Escher, who resigned from Widia (India) recently.

This was announced at the company's 32nd annual general meeting held at Bangalore yesterday. Shareholders were disappointed at the announcement of 20 per cent interim dividend coupled with a final dividend of five per cent.

Many of the shareholders had expected more than 50 per cent dividend following last year's announcement of a 1:1 bonus issue. Autar Krishna, chairman, Widia (India) Ltd, said the company recorded a turnover of Rs 200.41 crore for the calendar year 1996, registering an increase of almost 40 per cent when compared with 1995-96.

 

Widia (India) follows the calendar year for its financial year in line with its parent company Widia Gmbh, Germany. Autar Krishna said the 40 per cent increase last year was the highest achieved by the company so far. "The operating profit registered an even higher growth of 56 per cent," he added.

In the first five months of the current year, Widia has registered a growth of 15 per cent in its turnover.

Widia hoped the company would maintain this growth rate over the next three years. On the export front, the company registered a growth of over 20 per cent.

The company plans to tap the huge business potential in the growing markets of south east Asia and the Far East.

Although the company was favoured by a good market scenario at the beginning of last year, Autar said the benefit was lost in the latter part of the year because of the slowdown in the economy.

Speaking on the prospects for the current year, Autar Krishna said the performance for the current year has so far been in line with the company's plan, although the market conditions are 'less favourable' during the current year.

The company plans to focus on product development and widen its market segments as part of this strategy.