TAFE pays Rs 40 cr for `Eicher’ brand name
Tractors and Farm Equipment Ltd (TAFE) paid the Eicher group Rs 39.60 crore for the use of the `Eicher’ brand name. The amount was part of the consideration of Rs 310 crore that TAFE paid Eicher for its last year’s acquisition of three divisions of Eicher Motors Ltd.
Also included in the consideration was a sum of Rs 14 crore for `Goodwill’, the annual report of TAFE for 2005-06, says.
TAFE, part of the Chennai-based Amalgamations group, sold close to 20,000 tractors during the year under the Eicher brand, which was 18 per cent more than sales of Eicher tractors in the previous year.
(The three divisions of Eicher Motors — tractors, engines and gears — were taken over by an SPV, TAFE Motors and Tractors Ltd. In 2005-06, the company achieved a turnover of Rs 607.04 crore and a net profit of Rs 20 crore. It also paid TAFE a dividend of 20 per cent.)
TAFE itself sold 44,028 tractors last year, 35 per cent more than in the previous year thanks to "good monsoon and easy availability of farm credit from banks". The company’s net profit doubled to Rs 115 crore from Rs 54 crore in 2004-05.
"The major factor for the robust growth in profits has been the rise in contribution margins of the tractors division," the annual report notes.
Between themselves, TAFE and TAFE Motors and Tractors Ltd, had a market share of 22.76 per cent last year.
Simpson & Co
Simpson & Co, TAFE’s parent company, has reported a record turnover of Rs 522 crore for 2005-06, exceeding the Rs 500-crore mark for the first time. Its net profit rose to Rs 58.56 crore against Rs 34 crore in the previous year.
Simpson & Co produced 80,214 diesel engines during the year, 30 per cent more than in the previous year. TAFE is among its customers.
The company is developing a 2-cylinder engine for compact genset applications and a 4-cylinder engine for industrial applications.
It plans to develop a 4-cylinder engine to meet the US-Tier-III emission norms and variants of current series of engines with rotary fuel injection pumps.
Amco Batteries
Amco Batteries Ltd, Bangalore, has turned around. Last year, was the company’s Golden Jubilee year. The company’s financial statements show an income of Rs 14 crore derived by `sale of land’ and Rs 46 crore as `income from property development’.
During the year, the company paid back the entire bank loans of Rs 39 crore and wrote-off Rs 19.50 crore of deferred revenue expenditure.
On a turnover of Rs 145 crore (including the income from sale of land and property development), the company achieved a net profit of Rs 37 crore, after charging the deferred revenue expenditure to the profit and loss account.
Battery sales fetched Rs 82 crore (Rs 58 crore in the previous year).
Source:
