The Hindu Business Line : Ford India posts reduced net loss in 2004-05

According to Ford India's annual report for 2004-05, the company produced 28,805 vehicles and sold 27,301 vehicles during the year against a production of 22,259 vehicles and sales of 23,186 vehicles the previous year.

During 2004-05, Ford India became a 100 per cent subsidiary of Ford Motor Company of the US, after Ford International Services Inc, US, a wholly owned subsidiary of Ford Motor Company, acquired the 15 per cent shareholding of Mahindra & Mahindra Ltd in the company.

Ford India's plant is located at Maraimalai Nagar, about 45 km south of Chennai.

It manufactures the entry-level mid-size sedan Ikon, an urban activity vehicle Fusion, and assembles the sports utility vehicle Endeavour, whose kits are brought from Ford's plant in Thailand.

Besides, the company also sells the luxury sedan Mondeo, which it imports in fully built form from Ford's plant in Belgium.

During the current financial year, Ford India has started manufacture of the Fiesta, a premium sedan.

According to the annual report, Ford India continued to export Ford Ikon components in knock down condition to South Africa, China and Mexico and the value of exports was Rs 154.84 crore (Rs 144.54 crore).

The company, according to the annual report, has availed of customs duty exemption to the tune of Rs 89.54 crore (Rs 79.22 crore) for imports under the Export Promotion Capital Goods scheme.

Exports during the year under review were towards meeting the obligations under the scheme.

In October 2005, Ford Motor Company announced that it would infuse $75 million (about Rs 330 crore) as equity in its Indian subsidiary to support growth in this market.

Ford India's authorised share capital is Rs 1,500 crore and the paid up capital Rs 850 crore.

During 2004-05, Ford India paid its parent a royalty of Rs 17.25 crore against Rs 16.03 crore the previous year.

Deferred sales tax revenues (treated as unsecured loans) through the sales tax deferral scheme that the Tamil Nadu Government announced for projects with large investments amounted to Rs 133.21 crore against Rs 100.12 crore the previous year.

Ford India provided Rs 228.68 crore (Rs 216.98 crore) as unique tooling representing advances, considered good, to component suppliers for tools acquired or to be acquired by them for producing and supplying components exclusively for the company.