The Hindu Business Line : Whirlpool upbeat on exports — Converts part of Pondy facility into EoU

"Despite tough market conditions, the company has achieved an export turnover of Rs 106 crore during the 15-month period between January 2003 and March 2004 against Rs 77 crore last year," a company official said.

In the neighbouring South Asian markets of Nepal, Sri Lanka and Bangladesh, the Whirlpool brand has emerged as a leading western brand of home appliances, company sources told Business Line.

Further, the company has recorded significant growth in the Asia-Pacific, West Asian and African markets through greater penetration.

"The launch of new products, enhancement in the supply chain's efficiency and new marketing initiatives have enabled the company to build its position in these markets," an official said.

There have been increasing efforts by the company to implement a lean manufacturing programme and eliminate wastage in all areas of manufacturing.

"Significant efforts were made for productivity gains during the year, resulting in a 20 per cent improvement in the Pondicherry factory. The company has also won an order for manufacturing and export of portable home appliances for the US market under the KitchenAid brand," he said.

A sluggish economy combined with poor monsoons in the last couple of years have made things particularly difficult for the home appliances industry, and the first signs of recovery only came with a good monsoon in 2003.

Company officials said that Whirlpool used the period to continue its focus on brand building. Further, the company has changed its accounting period from calendar year to fiscal year to correspond to income-tax requirements - hence, the current accounts are for a period of 15 months ended March 31, 2004.

The company has posted a loss before tax of Rs 50.14 crore against profit of Rs 8.52 crore in the previous year ended December 31, 2002 after making adjustments to the extent of Rs 15.35 crore for extraordinary items such as VRS payment and other miscellaneous expenses.

To deal with severe pressure on margins due to enhanced competition and significant price erosion, particularly in the refrigeration segment, and a steep rise in input prices of commodities, the company has taken stringent cost control measures, he said.

Further, the company adopted a new trade management strategy during the March 2004 quarter.

It expects that this will help it in achieving greater productivity in terms of market share, supply chain efficiency, inventory optimisation, lower credit risk and better working capital management.

"The initiative was completed last month as per schedule. Regarding the additional cost impact due to the initiative, the impact has been partially recognised in the results to be declared and the rest will be recognised in the next fiscal," sources said.

To delist from DSE and MSE

The company proposes to delist from the Delhi Stock Exchange (DSE) and the Madras Stock Exchange (MSE). It proposes to take up the issue in its annual general meeting (AGM) to be held on Friday.

The shares of the company are currently listed on these exchanges and the BSE.

Company sources said: "The volume of trading of the company's equity shares is not significant on the DSE and the MSE. Further, the listing fees paid to these stock exchanges do not offer commensurate benefits to the company or investors. Also, delisting of the shares on the DSE and the MSE would contribute to a reduction in administrative costs to the company."

The company will continue to be listed at the BSE.

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