Ramjibhai – Jeevan
ane Karya
Monday, 8 July 2013
INDEX
Foreword By Shri Morarji
Desai
1 Welcome Address By
Shri U N Dhebar
2 Chapter 1 Foresight
3 Chapter 2 Past
History
4 Chapter 3 Poorman’s
Silver
5 Chapter 4 Swadeshi: The First Retirement
6 Chapter 5 Coming
out of Retirement
7 Chapter 6 First
Trip Abroad and Taking Retirement for Second Time.
8 Chapter 7 Involvement
with Khadi
9 Chapter 8 Venerable
Gandhi’s Personality
10 Chapter 9 Industrial
Expansion
11 Chapter 10 Industrial
Expansion
12 Chapter 11 Jaipur
Metals & Electricals Ltd
13 Chapter 12 Kamani
Metals & Alloys Ltd
14 Chapter 14 Kamani
Engineering Corporation Ltd
15 Chapter 15 Kamani
Engineering Corporation Ltd
16 Chapter 16 Kamani
Metal Oxide Pvt Ltd
17 Chapter 17 Kamani
Tubes Pvt Ltd
18 Chapter 18 X-Ray
Engineering Company (India) Pvt Ltd
19 Chapter 19 Indian
Rubber Regenerating Company Ltd
20 Chapter 20 Development
Schemes
21 Chapter 21 New
Inroads
22 Chapter 22 New
Inroads (continued)
23 Chapter 23 A
Generous Heart
24 Chapter 24 Brothers
25 Chapter 25 Family
26 Chapter 26 Humanity
27 Chapter 27 27th
June
28 Chapter 28 True
Wealth
29 A A
New Approach
30 B Jaipur
Metals & Electricals Ltd
31 C Kamani
Metals & Alloys Pvt Ltd
32 D Kamani
Engineering Corporation Ltd
33 E, F, G Kamani
Metallic Oxides Pvt Ltd & 2 others
34 Memorial By
Shri Mohanlal Mehta – Sopan
35 Trustee’s Report by
Shri Poonamchand Ramjibhai Kamani
Special Thanks
Special Thanks to
Ms Anu Sheth who has done an excellent
translation of the biography of late Shri Ramjibhai Kamani, for his
grandchildren to read.
Ms Anu
Sheth was teaching in St Xavier's College in the Department of Physics and did her
Ph.D from TIFR before getting into publication. Ms Anu Sheth she worked as an acquisition Editor
for Wiley Eastern Ltd., where she dealt with their scientific and technical
books. After she retired she continued editing books on a free lance basis
for various publishers. These were of
course mainly scientific and technical books. However she has started branching
out into editing general (non fiction) books.
This
translation from Gujarati to English is the first she has done though new and
challenging field for her as although she is Gujarati, she was born, brought up and did her schooling in England.
So Ms Sheth’s Gujarati was self taught.
Sunday, 7 July 2013
TRUSTEE’S REPORT
We
present, in this short biography, the different fields and activities that our Respected
Elder and founder of the Kamani Group - its director and inspiration - Shri
Ramjibhai Hansraj Kamani engaged in during his life, with the hope that it will
motivate and show the way to people in different walks of society, especially
the coming generation. Even now we feel that he is taking an active interest
and showing us the way, not only in the industries he established and developed,
but he is also the inspiration behind the industries set up after his death.
The
Kamani family, which along with his own family members includes, the workers,
officials and many friends, all know that Shri Ramjibhai, besides being a
successful and foresighted industrialist was also a social worker and
nationalist. He always took a deep interest in the field of education and
helped it many different ways. He has done appreciable work in many fields -
from khadi and serving Harijans to developing huge industries that are useful
to the nation and educating the people.
During
his lifetime he made arrangements to ensure that all his works would remain
functioning and active for a long time. His large and extended family has made
every effort to keep this tradition going. ‘Kamani Foundation’ and ‘Kamani
Charity Trust,’ were set up in 1960. Ramjibhai was always ready to help in many
different good causes. Along with his public donations, he also maintained a
tradition of donating anonymously, so that ‘the
right hand didn’t know what the left hand was doing.’ Over and above
donating to social and educational causes, the Kamani Group has always risen to
the occasion and given lakhs of Rupees to many other national causes. This is
not the place to give all the details, but since the inception of the ‘Kamani
Foundation’ and the ‘Kamani Charity Trust,’ in 1970-’71, more than Rs. 8 lakhs
has been given towards scholarships and to educational institutions and more
than Rs. 5 lakhs has been given as loans for educational purposes. Around Rs.
80,000 has been given for medical aid and more that Rs. 2 lakhs has been given
for social causes. In addition to these two trusts, there is a third, the ‘Shri
Ramjibhai Kamani Memorial Trust.’ From this trust over Rs. 8 lakhs has been
given as donations. Including the financial aid given by this trust, the Kamani
Group has given a total of over Rs. 65 lakhs as donations.
All
these have been given throughout the country and without any discrimination
between caste and creed. There was never any partiality towards a particular region
or caste. They have given bright students the facilities to go abroad for
higher studies. In addition to giving medical aid to individuals, they have
also given aid towards research for the prevention and cure of cancer and other
such diseases. Help is also given for social causes – to orphans, handicapped
persons, widows, the underprivileged – and to help people in difficulty.
A
scheme is also being planned to publish books, through all these trusts and
funds, on public welfare, which will best help, inspire and show the way to the
highest number of people. We can say that this book is the beginning of this
scheme.
We
feel it is our good fortune that Shri Morarjibhai Desai and Shri Dhebarbhai
have written the Foreword and Welcome Address to this book, and would like to
express our gratitude to them. Both these leaders, who were devoted to social
work and service to the nation, had come into close contact with Shri
Ramjibhai. We are grateful to them for what they have written after taking out
time to read the book assiduously. That we had the support of somebody like
Shri Mohanlal Mehta-Sopan, the well known writer and journalist, in writing
editing and publishing Shri Ramjibhai’s inspiring life story, is indeed an
auspicious event. He is one of our own and has known Shri Ramjibhai since
1930-’32. We are grateful to him for taking so much personal interest and carrying
out this work in the shortest possible time.
It
gives us great joy to present this biography of Shri Ramjibhai as a token of
our love and respect. We hope that it will be an inspiration to the younger
generation and many others in this field.
Poonamchand
Ramjibhai Kamani
President
: Kamani Chaity Trust
A MEMORIAL VOLUME
I
first came into contact with the Respected Shri Ramjibhai in 1930-32, during
the days of the freedom struggle (satyagraha).
I had heard that he was a person who was successful in business and industry, but
was interested and believed in the activities proposed by Pujya Gandhiji –
khadhi, cottage industries, service to villagers, services to Harijans, supporting
indigenous goods, etc., and he wholeheartedly supported the efforts to attain independence.
When I saw him for the first time in his institution in Amreli, even during
this first meeting I saw in him surprising humility, firm resolve, extremely practical
common sense, clear thinking and foresight - his personality was fascinating
and impressive. He was not interested in meaningless conversation or useless
criticism; he was only expecting specific, meaningful work.
This
first impression gradually became stronger. Whatever I came to see, know and
hear about his life after that and whatever I have read in the pages of this
book, was proved by that first experience which was truly appropriate. I have
known Ramjibhai’s son, Punamchandbhai since the time he was studying in Vinay
Mandir in Dakshinamurthy and enjoyed his affectionate nature and companionship
for a few years. When he asked for my cooperation in publishing Ramjibhai’s
biography, I joyfully agreed; to tell the truth it was also out of a sense of duty
because of our friendship. When I glanced at whatever material he had gathered
for this book, memories of my personal association with Ramjibhai surfaced anew,
and I got a deep and unique insight into the different aspects of his
personality. He had reached the pinnacle of success in the field of business
and industry, and was also highly respected by others due to his humanitarian
ways. Because he joyfully accepted his work as a duty it was pleasurable for
him and an inspiration to others.
I
have not written this biography, neither have I collected the material for it. I
have not corrected or revised the drafts (of the book) but, I have been
involved with it from the beginning to the end. Actually the painstaking work
of collecting the material for this book, organizing it properly and writing it
in the form of a biography, was done by Shri Dolarkumar Bhatt, Ramjibhai’s
trusted friend, who had the good fortune of hearing about Ramjibhai’s
experiences, first hand. The editing of the language and style was done by Shri
Krishnavir Dixit, editor of Kalam Kitab, and
an erstwhile colleague of mine. Shri Dixit is a renowned critic. As proof of
his critical ability, the Gujarat Sahitya Association had appointed him to
chair their annual debate on Gujarati literature in 1970. This book is the
outcome of the hard work and enthusiasm of Shri Dolarkumar and Shri Dixit. My
role has really been limited to that of an observer and planner and to giving some
inspiration. The pictures given in this book were also located and collected by
Shri Dolarkumar, who has also given the captions. The printing of the book and
the arduous work of proof reading was carried out by Shri Dixit. Shri
Punamchand and I did read and go through all this – so in the publication of
this book it could be said that, ‘many hands made light work,’ or the work was
done quickly and efficiently by many persons.
I
came into contact with Shri Punamchand, who is endowed with many of his father’s
virtues, and to some extent his other brothers, because of this book. Their
goodness and practical intelligence made a lasting impression on me. Through
this experience I also understood why they were so successful in the industrial
and other fields and the secret as to why they were always progressing. I must
also mention here that after they decided to do something, they knew how to see
it through to the end.
After
coming into close contact with Shri Ramjibhai and learning about his life and
his work, I sincerely feel that he looked at life from all angles and revered
it. He believed in the goodness of people with whom he came into contact and
knew how to make the most of them. He was as adventurous at an older age as he
was when he was younger, but what is surprising is that even at a young age he
had very mature ideas, thinking and natural wisdom. He was able to foresee
future circumstances, and had a natural ability to plan accordingly and reach
the desired target. Another thing I could see in his life was that he could
easily grasp the trend of the changing times and could naturally adapt to them;
he did not need to think and reason about them. Due to this he was just as much a progeny of
the Jawahar era and the scientific ages as he of the Gandhian era.
There
was never any change in the simplicity of his personal life. Regular in his
habits and aware and disciplined in his ways, Ramjibhai had trust in the innate
goodness of mankind but also had an extraordinary capacity to judge people. He
rarely made a mistake in deciding what was right or wrong, but could
immediately and easily judge a person who came into contact with him. Because
of this he could assign the appropriate rights and responsibilities to others. These
managerial abilities came to him naturally. I feel that this ability must have
played a major role in his sons’ upbringing and progress. He was adventurous
and always ready to ‘seize the moment.’ It was never in his nature to ignore or
run away from anything. Despite this he was never involved in any confrontation
or fervour. He followed the principle of ‘one step at a time,’ or building by ‘one
brick at a time.’ He became stronger in difficult circumstances. Rather than
being cowed down by difficult circumstances he would see how to overcome them.
I
consider it my good fortune that Shri Punamchandbhai, considering me a family
member, has involved me in the work of writing and editing this book, which can
be considered a tribute of the life and times of Shri Ramjibhai. This has given
me an opportunity to look deeply into Ramjibhai’s life and works and truly
understand their meaning. This benefit is more than compensation for any hard
work I have put in, in the publishing of this work.
Mumbai
Dt.
11.10.’71 Mohanlal
Mehta - Sopan
E, F, G: Other Companies
E. KAMANI METALLIC OXIDES PVT. LTD.
This
company showed more progress than Kamani’s other companies. In 1964, this
company made a profit of Rs. 1 lakh, 58 thousand, which increased to Rs. 2
lakhs, 58 thousand in 1965. After this, in 1966, the profit margin reached Rs.
3 lakhs, 98 thousand.
In
this year on 9.7.66, Shri Poonamchand’s nephew (sister’s son), Shri Ashwin
Parekh became a director of this company. In 1967 this company showed a profit
of Rs. 4 lakhs, 54 thousand. A distribution agency was given to M/s Zinc and
Chemicals. In 1968 the profit increased to Rs. 3 lakhs, 36 thousand, and
reached over Rs. 8 lakhs, 24 thousand in 1969. In this year Shrimati Indira
Shrivastava, the wife of Dr. Suresh Shrivastava, who was a director in Kamani
Metals and Alloys Ltd., was appointed a director in this company.
F. KAMANI
TUBES PVT. LTD.
In
1964 this company made a profit of Rs. 32 lakhs, 69 thousand. In 1965 the
profit margin fell to Rs. 28 lakhs, 64 thousand. In 1965, the company
experienced a shortage of metals and so like Kamani Metals and Alloys, this
company also had to endure some hardship. Due to the confrontation with
Pakistan, restrictions were imposed on articles that were not easy to procure,
so it became difficult to obtain non ferrous metals.
This
company diversified into manufacturing thin metallic rods used for making visor-
nipples and metallic strips used in the hinges of spectacle frames. In addition
there were plans to set up machines to produce aluminium rods.
They
also planned to build a new air conditioned building behind Kamani Chambers,
where the head office was situated.
In
1966 this company made a profit of Rs. 20 lakhs, 98 thousand. Due to the
devaluation of the Rupee, the value of the loan taken from the Commonwealth
Development Corporation increased and the company had to bear an additional liability
of Rs. 14 lakhs, 29 thousand. Until June of this year, there was a shortage of
both copper and zinc, so the decline in production continued.
Many
of the new machines that had been ordered from abroad had arrived and work was
started on setting them up.
Due
to the fact that the output was less in the year 1966, the profit margin in the
year 1967 fell to Rs. 2 lakhs, 80 thousand. The wave of depression also affected
this company. As a result, despite the fact that the annual output increased in
1967, the demand for it decreased, and so it had to be sold at a lower rate,
due to which the profits fell. The company also suffered because of the
scarcity of raw metals.
In
the year 1968, there was no question of making a profit instead the company had
to bear a loss of Rs. 2 lakhs, 14 thousand. As the depression started to ease
its effect was seen in the latter part of the year when the production did
increase slightly, but due to the fact that the price of imported raw metals
increased, the quantity received for the amount of money the company had fixed
(for imports) was less than anticipated. As a result, costly scrap material had
to be bought from the market so that the production could be continued.
However, the effect of this increased production was really felt in 1969.
In
1969 the profit margin reached Rs. 39 lakhs, 5 thousand. The noteworthy feature
of this year was that the sales and profit recorded were the highest in the
last six years. From the time the factory had started working, the profits were
highest in this year.
G. INDIAN RUBBER REGENERATING COMPANY LTD.
In
1964-65, this company made an income of Rs. 1 lakh, 34 thousand, without taking
the expenses into account. In the previous year the output was 1,043 tons,
which increased to 2,171 tons this year. But due to the fact that import
licences had been issued last year there was not much demand for reclaimed
rubber. The situation changed after April, 1965, when the Central Government
stopped the import of reclaimed rubber.
As
the demand for synthetic rubber increased in India, it became necessary to
manufacture reclaimed rubber from synthetic rubber. Since the method of
manufacturing reclaimed rubber from synthetic rubber was different from that of
manufacturing reclaimed rubber from natural rubber the necessary machines had
to be imported. For this purpose a loan of Rs. 4 lakhs was sanctioned by the
Industrial Credit and Investment Corporation. Additionally it was decided to
increase the production from 4,800 tons to 10,400 tons.
The
quality of the goods produced in this factory was considered to be the best in
the whole of India. Due to the fact that the price of the goods was almost 30 -
40% less as compared to those imported from Europe and America, foreign
material posed no competition. Moreover because imports were restricted, there
was no possibility of any competition arising.
1965-66: During this year the
profit margin reached to over Rs. 15 lakhs, 40 thousand, and for the first time
since the company was started a dividend of 8% was declared. Due to the
devaluation of the Rupee, the amount the company had to repay for the loan of 4
lakhs foreign exchange that they had taken increased to Rs. 9 lakhs, 33
thousand, so the company had to bear an additional burden. The output increased
from 2,171 tons to 3,500 tons.
This
year a new type of reclaimed rubber was manufactured. Moreover this year the
total production capacity (of 4,800 tons) was utilised.
During
this year there was an illegal strike of 40 days in the factory.
1966-67: During this year the
profit margin was Rs. 16 lakhs, 10 thousand. Compared to last year the profit
margin increased slightly this year. So an 8% dividend was declared as in the
previous year.
Despite
the fact that the strike lasted for 40 days, the output increased from 3,500
tons to 4,335 tons. Machines were set up to produce synthetic rubber. They were
also granted permission to increase the production to 7,000 tons.
Even
though the cost of all the raw materials had increased by 15-30%, the company
did not increase the price of its finished goods, which was highly appreciated
by the Central Government and the rubber industry.
Fortunately
the depression did not affect this industry at all. Since the strike was
illegal, the workers were ready to compromise. An agreement was reached
regarding their wages and expenses, which would be valid until 30.4.69.
1967-68: This year the profit
margin decreased and fell to Rs. 13 lakhs, 29 thousand. However a dividend of
12%, i.e. an increase of 4%, was declared. As compared to last year the output
increased by 18%, but, despite this the profit decreased as the costs of
labour, wages, electricity, oil and other necessary items required for
production all increased, due to which the cost of production increased. So
steps were taken to increase the production to 6,000 tons by March 1969 and to
7,000 tons by March 1970.
This
year, the profit could have been higher, but due to the fact that there was a
strike in the factory of one of the company’s largest clients – a tyre
manufacturer – for 8 months, the quantity of goods sold was less. Once
permission was received to increase the production by 2,200 tons it would reach
7,000 tons.
1968-69: This year the
profit margin decreased. Since the profit was Rs. 12 lakhs, 63 thousand, a
dividend of 7.5% was declared. As compared to last year the output neither
increased nor decreased. The reason why the output remained constant was that there
was a 16% cut in electric power in Maharashtra. If this had not happened then
the output would have increased by 8%.
Shri
Prabhakar Balwantrai Mehta was appointed as Resident Director and Chief
Executive Officer and Shri Navin Kamani was also appointed as a director.
The
President, Dr. Zakir Hussain passed away and was succeeded by Shri. V.V. Giri.
The
national Small Scale Development Council decided to establish four centres for
industries having a production of 600 tons. This company was ready to give
technical collaboration to these centres.
1969-70: This year the profit
was Rs. 15 lakhs, 56 thousand. Shares which had been bought at Rs. 75 were now
worth Rs. 100. The production increased by 14% as compared to last year.
Delivery of the machines, which had been ordered within India and from abroad,
was delayed. So the target of 6,000 tons could not be realized. To avoid any
impediment in the production, an agreement was made with the workers regarding
their wages, which would be valid until August 1972.
The
production capacity was increased to 7,000 tons. This year in the first efforts
in exports, goods worth Rs. 1 lakh, 17 thousand were exported to middle, east
and south Asia.
Due
to a complete change in the way of working the production capacity increased a
great deal.
This
year the company started training programs for all categories of staff. In
addition the company also started sending their workers to take part in
training programs to increase their knowledge, in conversation, etc., held in
other establishments of the Kamani Group.
The President of Kamani Indusries, Shri Poonamchand, presenting a model of the towers - produced by Kamani in the collaboration to develop electrical connectivity between India and Iran - to the Shah of Iran, Mohammed Raza Pallavi.
The Shah of Iran making a speech during the welcoming ceremony for him. From the left are Shrimati Sumitra Kamani and the Governor at that time, Dr. P.V. Cherian, Chief Minister Shri Vasantrao Naik, Shri Poonamchand Kamani and Central Government Minister, Dr. Karan Singh.
Shri Ashok Mehta, Manubhai Shah, Poonamchand Kamani, C.N. Vakil and H.M. Patel at a second discussion.
President, C.N. Vakil, Dr. R.C. Cooper, Shri Chimanlal Shah, Shri Poonamchand Kamani and Shri Hasmukh Kamani at a discussion organised by the Kamani Foundation, set up in memory of the Late Ramjibhai.
During a discussion of the Kamani Foundation, Shri S. Venkatraman, a member of the planning committee at that time, addressing the audience. Others seen in the photograph are Shri Murari Ved, Punamchand Kamani and Rasiklal Kamani.
During a discussion held on 13th September, 1971, the vice-president of the planning committee, Shri Subramanyam is giving a speech. The President of the planning committee is also seen in the photograph.
D. KAMANI ENGINEERING CORPORATION LTD.
As
a result of the company’s determination to conquer new fields in the industry,
irrespective of profits, the annual profits of the largest company of the
Kamani Group also started to gradually decline. In the year 1964-65 the profit
was Rs. 52 lakhs, 72 thousand. Since there was a plan to issue bonus shares
worth Rs. 22.5 lakhs, the shareholders could not be paid any dividend.
In
the previous year the company had received a contract from the Central Railways
to carry out the electrical work on the 370 kilometre track from Igatpuri to
Nandgaon, due to this they made good progress in this year. When they started
this kind of electrical installation work for the railways, about ten years
previously, they had done so with the technical collaboration of a Belgian
company – The Traction. However, for this electrical work along the 370
kilometres of railway tracks, there was no need of any technical collaboration.
This contract was worth Rs. 1 crore, 70 lakhs. Moreover, the company had got a
contract worth Rs. 1.25 crores, for the ropeway from Chasnala to Burnpur.
In
addition to having the largest factory for transmission towers throughout Asia,
this company also had a centre for testing towers, which was deemed as the
largest in Asia. This centre started functioning on 20th May, 1965.
This testing tower was 40 metres tall and had a width of 10.5 metres at its
base.
The
factory had an output of 25,000 tons. An application was submitted to the
Industrial Credit and Investment Corporation to increase this to 60,000 tons, and
this was approved. A loan of Rs. 70 lakhs – Rs. 40 lakhs in foreign exchange
and Rs. 30 lakhs in Indian currency - was taken for this purpose. The first
step in this venture was to put up a factory in Jaipur.
Thus,
the year 1964-65 was momentous for both the country and for this company.
During the conflict with Pakistan, the nation’s spirit burned bright, but along
with this the country was also caught up in a financial crisis. Highly
experienced persons like Pandit Nehru, Shri Lal Bahadur Shastri, Shri
Balwantrai Mehta and Dr. H.J. Bhabha were no more. Within the company,
Ramjibhai and Shri H.D. Hiranandani had also passed away. The tax on bonus
shares was cancelled. Tax on dividends of up to 10% on fully paid up capital
was also cancelled. The surtax was decreased from 40% to 35%. But
simultaneously, the tax on the company’s income was increased by 10%. As a
result the company had to shoulder a burden of nearly Rs. 1 lakh. The
production of towers increased from 18248 to 27851 tons, i.e. an increase of
50%. Instead of manufacturing road rollers for only one type of tractor, the
company now began producing them for three different types of tractors. The
largest buyer of road rollers was the district assemblies. During this year 59
road rollers were sold.
Six
hundred tons of towers were exported to Thailand and Nigeria. Exports would
gradually increase. Since orders were being received from developing countries,
payment was to be made in instalments over a period of 7 to 10 years. As a
result the company had to bear a reduction in cash flow.
In
the year 1965-66, the margin of profit increased to Rs. 43 lakhs, 26 thousand. It
was possible to give a dividend of 7%. The production of towers was 22,678
tons, 5,173 tons less than that of the previous year. However the number of
road rollers that were produced was 130, the highest ever. A new model of road
roller was also brought out.
There
was good progress in the export division. There was an order from Nigeria,
worth Rs. 2 crores for 14,000 tons of 330 kv (kilovolt) towers. These towers
were tested in India, for the first time ever, at the Jaipur factory on 29th
September, 1966. At that time, the British consultants, M/s Merkz & McLeylan, representatives
of the Niger Dam Authority were present. Towers worth Rs. 15 lakhs, 41 thousand
and meters worth Rs. 75,000 were exported to Thailand and Kuwait, which was
about 7% of the total production.
During
this year there was a drastic change in the financial policy of the country. As
a result the Rupee was devalued in June 1966. Funds generated by companies by
taking fixed deposits and giving interest on them, were now controlled by the
Central Government.
The
business industrial union petitioned the Central Government that they be
allowed take part in agricultural activities as a Joint Stock Company, but this
was rejected.
Shri
Navnit Kamani was appointed as a director of the company on 28.3.1966, whilst
Dr. Balraj Nizavan was elected as a director on 19.1.1967.
1966-67: In this year the
margin of profit was Rs. 37 lakhs, 53 thousand, which was less than that of the
previous year by Rs. 5 lakhs, 73 thousand, but the company still declared a
dividend of 12%.
As
soon as the Jaipur factory was set up in June 1967, it went into production and
on 26.12.67 it was inaugurated by the then finance minister, Shri Morarjibhai
Desai.
Despite
the fact that in October – November 1966, that is at the beginning of the company’s
year, there was a sit down strike for 42 days - the production was slightly
higher than that of the previous year. The construction work of the
transmission lines and the ropeway in Andhra was completed during this year.
The
company received an order to build an underground power house in Ukai. Until now the various projects undertaken were
ropeways, radio towers and electrification lines – now civil construction work
was also added.
In
this year the annual output of the Kurla factory increased from 24,000 tons to
30,000 tons. The effect of the depression was still prevailing, so gradually
special attention was paid to exports, and 42% of the output was allotted for
exports. In addition, work on transmission lines went on at eighteen different
places.
1967-68: In this year, the profit
margin remained at Rs. 28 lakhs, 47 thousand. A point worth noting is that the
country’s financial position once again declined and then started to stabilize.
Agricultural output increased. In industry, the output increased in certain
fields, the country’s foreign exchange position started to improve and the
market rates remained fairly stable. These factors were signs that the
financial state of affairs of the country was improving.
During
the fourth Five Year Plan, the irrigation minister at that time, Dr. K.L. Rao
announced that Rs. 800 crores would be allotted for the supply and spread of electrification.
It
was anticipated that next year the export of engineering goods would increase
from Rs. 42 crores to Rs. 85 crores, as the government established The
Industrial Development Bank for industrial products and growth of exports.
Amongst
the export orders received by the company this year the three main ones were:
1. Package
deal from Iran: This included 25,000 tons of towers and 11,500 tons of copper
conductors and A.C.S.R. The total worth of these goods was Rs. 15 crores.
In
connection with this project, the Shah of Iran visited Mumbai on 12th
January and on that occasion the Kamani Group had organized a function at the
Taj Mahal Hotel, during which he had showered praise on Kamani Inustries.
2. Sudan
turnkey project: This deal was for Rs. 6 crores. It included 9,000 tons of
towers for 220 Kv and 110 Kv transmission lines and in addition A.C.S.R
conductors and ground wire was to be supplied and the transmission lines set
up.
This work was inaugurated on 8.2.1969, by the Prime Minister of the
Republic of Sudan at that time: On this occasion he said, “The inspiration for the country of Sudan to gain (political) independence
came from Mahatma Gandhi and Shri Nehru, who are very important to us; just as
important for our country’s financial development is this cooperation with the
Kamani Group. Can there be any greater praise from a non-developed nation
towards a developing nation? ”
3. Order
from the USA: This order, for 7,000 tons of towers for 500 Kv (transmission
lines) was received from three power companies in America and was worth Rs. 1
crore, 20 lakhs. This order was the first of its kind, not only for Kamani, but
for the whole of India. To receive an order for such engineering goods from a
country considered as very advanced in the fields of science and technology,
was not only a feather in the cap of the Kamani Group, but in that of the whole
nation. On 26.2.69, Mr. A.W. Longacre, visited the Kurla factory on behalf of
the American power companies. He wrote in the visitor’s book, “I have seen goods of extremely high quality
produced in this factory. My power companies will be extremely satisfied with
such work.”
As
the company’s export business gradually increased, there was also criticism
from some quarters that the factory was only concentrating on export orders and
not giving enough attention to the nation’s needs. But this criticism was not
valid, as in this year the following projects were to be completed:
1. In
Maharashtra: Borivali - Tarapore transmission line
2. In
Kerala: Sabarigir – Tamil Nadu border line
3. In
Andhra Pradesh: Upper Sileru – Gazuvaka line
The underground power house in Ukai could not be
completed due to water logging because of excessive rainfall.
In
addition an order worth Rs. 1 crore, 55 lakhs was received for electrical
installations from the Western Railways.
A
new design of 220 Kv was brought out by the factory, leading to a 15% savings;
over and above this a separate plant for galvanizing nuts and bolts was set up.
On
10.9.68, the company’s highly experienced director, Shri Chunilal Bhaichand
Mehta passed away.
For
the first time in the history of the Kamani Group, a decision was taken to sort
out the differences between the workers and the management across the table.
1968-69: In this year there
was actually a loss, but by making changes in the accounting system, according
to Article 205 (2) (B) of the company’s rules, they were able to show a profit
of Rs. 12 lakhs, 94 thousand.
In this year it was also decided to issue
bonus shares in the ratio 1 : 10.
In
the Jaipur factory, in addition to a sixteen day strike the zinc plating bath
also failed. Due to water logging because of the floods, the work in Ukai also
came to a halt. In Sudan, the route (along which the transmission lines were to
be set up) was changed and so the work there was disrupted.
1969-70:
This year the profit margin was Rs. 25 lakhs,
64 thousand. A dividend of 9% was distributed.
During the last two years or so the country had been
facing a shortage of steel. This shortage continued in this year too. To put
the new plans for the distribution of steel into effect, the Central Government
appointed the Priority Committee in place of the Joint Plant Committee and gave
the required importance to export orientated production.
The ruling Congress party won an overwhelming victory in
the country. Bound by traditional conservative ideas, the public voted according
to their own beliefs. As a result of which the ruling Congress party was
victorious, and gained a greater majority than it had ever expected. In the
fourth Five Year plan, it was decided that 232 lakh Kilowatts of electricity
would be generated. The government’s financial policies were especially encouraging
as far as exports were concerned. The company exported goods worth Rs. 8
crores, 18 lakhs, more than 50 times the amount as compared to the year
1965-66. The company was felicitated by the Engineering Export Promotion
Council and the Federation of Indian Chambers of Commerce and Industry.
An order was received for 500 kilometres of 220 Kv transmission
lines. In addition they also received an order for the tails and maintenance of
Jumbo jets. Thus the company branched out more and more. To further the
progress of diversification, they received a loan of Rs. 45 lakhs from the
Industrial Development Bank.
As per the laws applicable to contracts it became
necessary to register this company with the Central Government’s Companies’
Department.
The most notable thing that happened this year was that
the management decided to adopt a new philosophy.
Its five branches were as given below and they became a five
pointed code of behaviour.
1. To
maintain human dignity
2.
No exploitation
3.
Freedom of speech
4.
Management by agreement
5. Agreement
by persuasion
For many years the Kamani Brothers had been
contemplating upon and discussing how to develop relations between the owners and
the employees so that they were mutually beneficial to all. The philosophy,
including the above five points, resulted after the services of Dr. Suresh Shrivastava
of the Management College in Calcutta were introduced. And the philosophy was appreciated.
Kamani Engineering was the first to take steps to act on this philosophy. Many
committees were formed, which included representatives from all levels and all
sides and the Kamini Brothers entrusted them with administrative
responsibilities. The Kamani Brothers were always there to solve any difficult
problems that arose. Business dealings which until now had been handled in
traditional ways became more professional. With this new method of working,
responsibility was decentralised in a major way. In the beginning, members of
the committees experienced some confusion. They also experienced some
trepidation, but later the idea of self preservation inspired them to accept their
responsibilities and they all shouldered the work. A result of this was that
people’s hidden strength bloomed and they made personal progress. This
philosophy gradually extended to Kamani’s other companies and became
widespread. With the employees having the opportunity to be directly involved
in the company’s working, it was but natural that their attachment to the
company grew and they felt it was their own; gradually this feeling became
stronger.
C. KAMANI METALS AND ALLOYS LTD.
The
financial year of this company was from January to December. By preparing the
accounts and balance sheet for one and a half years the accounting year was
changed to July to June. After this in the year 1964-’65, it made a profit of
Rs. 49 lakhs, 32 thousand.
The
Central Government decided that sheets and strips of copper, zinc, etc. would
not be supplied to the non ferrous metal industry to manufacture large vessels,
so the total production in the next year only increased by 2%, which of course
is really very little. In addition, although they received foreign exchange for
consignments of raw material based on the previous year’s production, the price
of raw material, especially the price of copper was very high internationally,
so with this amount of foreign exchange they could only purchase a much smaller
quantity of the raw material. Despite this by using scrap material and goods
from the market they were able to increase the production by 2% over that of
the previous year.
The
same problems also impeded the export of goods. The highly priced indigenous
goods could not compete everywhere in the international market. As a result
exports dropped by 60% as compared to the previous year.
In
the meantime, the machines that had been ordered to diversify the production were
set up and put into operation, as a result of which there was a definite possibility
of increasing the output.
After
the death of Shri Ramjibhai, another director of the company, Shri. H.D.
Hiranandani, passed away on the 16th October.
In
1965-66 the profit made was over Rs. 44 lakhs, 27 thousand.
Since
they were considering issuing bonus shares, it was not possible to give any dividend.
Even
though the difficulties remained the same as in the previous year, the exports
increased by 17% as compared to those in the earlier year. With the devaluation
of the Rupee in June, 1966, the government cancelled all the incentives that
had been given to encourage exports. As a result this company had to totally
stop the export of goods.
In
the year 1966-67 the profit was Rs. 36 lakhs, 44 thousand. However, during the
whole year procurement of raw material remained uncertain. So the Indian Non
Ferrous Metal Manufacturers’ Association, which had been established by the
Late Ramjibhai, put forward a general petition before the Central Government,
regarding the supply of these goods. They hoped that the government would
accept the original petition, or at least agree to it with a few changes. This
year the exports dropped by almost 57%.
As
soon as all the machines that had been ordered to diversify the production were
set up and put into operation, the company showed good progress in the
production of spring brass, used in telecommunications and the production of nickel
silver. In addition since the plans for manufacturing steel strips were also
going ahead it would be possible to obtain a licence for this activity, shortly.
In
1967, Ramjibhai’s younger brother Shri Girdharlal Kamani passed away on April
28th and his former assistant, Shri Zaverchand Panachand Mehta on
September 17th. These two gentlemen had been directors of the company
for the last two decades.
During
the last few years the profit of the company had been decreasing. This trend
continued and in 1967-’68 the company had to bear a loss of Rs. 15 lakhs, 82
thousand. Naturally there were many reasons for this deficit: Firstly, was the
uncertainty in the procurement of raw material. Secondly, during the period
from October 1966 to March 1967, there was no raw material at all. Thirdly, despite
repeated requests to the Central Government, which had been presented in
different ways, there had been no proper allotment of foreign exchange. Over
and above this the consignment of material allotted to the company during the
period from April to September of this year, was delivered only in November
1967. Now the only way to keep the factory running would be to purchase costly
scrap from the market and continue production.
In
addition to these main causes, there were many other small reasons for the loss
incurred. There was a severe depression in the engineering industry. Due to
this the demand for the goods produced had decreased a great deal, so the
profits made from the sale of goods also declined. As if this wasn’t enough, during
this year there was a strike in the factory that lasted for 46 days, which
severely affected the factory’s production.
Even
so, despite the wave of depression in the country, the company put in extra
efforts to increase exports, and this year there was a noticeable rise in the
quantity of material exported as compared to the decrease experienced last year.
Just like other industries, the non ferrous metal industry, applied for
monetary relief from the government, both directly and indirectly, i.e. through
its association, but did not meet with any success, and there was no definite
outcome.
As
a result of the expansion plans, spring brass was now being manufactured on a
large scale. In addition, the factory also started producing copper strips used
in co-axial cables.
On
10th February, 1968, Ramjibhai’s youngest son-in-law, Shri
Dineshbahi Shah, the son of Himchandbhai of Jivanlal (1929), joined the firm as
a director.
The
year 1968-69 turned out to be very bright for the company’s future. The
previous year’s loss of Rs. 15 lakhs, 82 thousand was completely cleared and
the company showed a profit of Rs. 23 lakhs, 8 thousand.
As
the country started to become financially prosperous, the working capacity of
the company also improved proportionally. The output increased by 39% over that
in the previous year and the exports also rose by 55% as compared to the earlier
year. It was decided to increase the company’s capital from Rs. 1 crore to Rs.
2 crores. A loan of Rs. 90 lakhs was taken from the Industrial Finance
Corporation to set up a division in Bangalore for the manufacture of steel
strips.
In
the year 1969-70, the profit fell slightly and dropped to Rs. 14 lakhs, 55
thousand. On the other hand permission was obtained from the government to
issue bonus shares worth Rs. 22 lakhs.
In
comparison with last year the output increased by 12% and one way or another, they
were able to make firm inroads in exporting goods to the far east and establish
themselves on a firm footing.
As
more and more new products were manufactured, steps were also taken to improve
their quality and good progress was made in this direction. In addition they
also succeeded in reducing the costs of production.
Dr.
Suresh Shrivastav and Sir Dattarsingh were taken on as directors on 24.2.70 and
3.11.70 respectively.
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