The agro division of Bengal Tools has two units at Pondicherry and Dum Dum in West Bengal. Both of them assembles power tillers in the 12-15hp range. However, according to Shrachi managing director R Todi, around 30 per cent of the components have been indigenised to suit Indian conditions. The tillers are imported from China in semi knocked down (SKD) and completely knocked down (CKD) conditions.

Company officials have already visited five power tiller manufacturers in Korea, Thailand, China and Japan for a possible tie-up for technology and equity participation. Since talks with a possible joint venture partner is yet to firm up, Todi said, "we are having correspondence with five of them and we have kept all our options open."

Thegroup has already acquired a 1.5-acre plot at Dum Dum to set up the proposed joint venture. Initially it plans to manufacture 3,000 power tillers annually and later increase it to 6,000.

According to Todi, the company is now importing the tillers at Rs 43,000 from China on which 28 per cent customs duty is levied. Keeping a margin between seven and eight per cent, the tillers are assembled and sold in the market at Rs 80,000.

The company planned to set up a new manufacturing unit, at an estimated investment of around Rs 15 crore, after coming across a Government report which says that foodgrain demand will touch 325 million tonnes by 2020, since it would increase the demand for power tillers.

After the joint venture is set up, Bengal Tools will discontinue assembling of imported power tiller machines and the 40 odd personnel will be absorbed in the proposed project. Todi noted that the company would be able to indigenise the foreign technology by next year.

Its only competitors are based in SouthIndia despite the fact that between 3,000 and 4,000 power tillers are sold annually in the three eastern states of Bihar, Orissa and West Bengal.

Net profit at Rs 2.03 cr

Shrachi Securities reported a net profit of Rs 2.03 crore for the year to March 31, 1999, and has recommended an eight per cent dividend. Its financial expenses increased to Rs 6.03 crore against Rs 4.89 crore in 1997-98. Other expenditure declined to Rs 3.30 crore from Rs 3.54 crore in 1997-98.

A company press release noted that the company provided Rs 22.33 lakh towards its non-performing assets in accordance with the Reserve Bank of India norms.