The Indian glass manufacturer, Indo-Asahi Glass Company Ltd., posted a net loss of Rs 17.43 crore on its operations during the year ended 30 September 2000. The company“s income during the period und…
The Indian glass manufacturer, Indo-Asahi Glass Company Ltd., posted a net loss of Rs 17.43 crore on its operations during the year ended 30 September 2000. The company“s income during the period under review stood at Rs 85.29 crore. In the previous 18-month accounting period ended 30 September 1999, the company had posted a loss of Rs 21.16 crore on a turnover of Rs 108 crore. According to Mr P.N. Roy, Indo-Asahi chairman, the glass industry has been passing through a “serious recession” on account of uneconomic price levels, uneven demand and supply and a slowdown in exports. As such, despite achieving a 20% increase in sales on an annualized basis during the year ended September 30, 2000, the company has posted a loss. The problems have been compounded due to a rise in the prices of petroleum products, imposition of fuel surcharge on electricity, and an escalation in the prices of other inputs. According to Mr Roy, the company“s development wing has already drafted a blueprint to widen the product range, by introducing value-added products. A proposal has also been mooted to build up sales volumes, by introducing a judicious mix of premium products in the market. He expressed the hope that rapid urbanization, fuelled by liberal house-building loans from institutions, would provide a shot-in-the-arm to the glass industry.