Sunday, 7 July 2013

E, F, G: Other Companies

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.

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.   
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.        


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