COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Shaw Wallace reaffirms resolve to become debt-free in three years

Rakesh Kumar Dubey in Calcutta

The beleaguered liquor giant Shaw Wallace and Company Limited has chalked out an ambitious strategy to become a debt free company within the next three years.

Company's managing director A K Jain told shareholders at the 52nd Annual General Meeting here early this week that the entire liability of Rs 2.64 billion at present of inter-corporate deposits and Rs 10 million worth fixed deposits collected from public would be paid within that period.

"We are working as per plan and it was reflected in the performance of financial year 1997-98 when turnover jumped substantially and we managed to post a profit after tax of Rs 104 million in spite of growing competition," he said.

Jain said, "With the available profit, we could have easily paid a dividend this year, but we decided to conserve the resources as cash flow has become extremely difficult."

He said with 26 distilleries and 13 breweries, the company was confident of making a turnaround and make its presence felt in the global liquor market. "We are one of the fastest growing companies in India in liquor and beer and are all set to face the onslaught of multinational companies."

Jain said the liquor division has attained international standard of quality and added another feather in its cap when the export award was given to the company by the government of India.

The company has been the largest exporter of alcoholic beverages from the country for the seventh year in succession.

In February 1999, the brewery division sold over 1.5 million cases, the highest ever in company's history.

UNI

Business news