Calcutta, Oct 13: Gramophone Company of India Ltd, popularly known as HMV, is all set to take up compact disc (CD) manufacturing in the country. At present, the company imports CDs from England and in the past one year it has seen 50 per cent growth in its sales.The director of the company, PK Mohapatra, has, however, refused to provide any details on the plan. It is understood that a number of sites for the CD manufacturing unit are being considered and Calcutta was a strong contender.
Earlier, addressing the 52nd annual general meeting of the company, chairman RP Goenka said that the CD market was witnessing a remarkable growth. Last year, CD sales jumped by 50 per cent against a compounded growth of 81 per cent over the previous six years.
``We expect the CD market to grow further with the downward trend in hardware costs and rationalisation of retail prices. By switching on to local manufacturing sources for supplying CDs, we achieved substantial savings in costs during 1998-99. The time may not be far away when a CD manufacturing unit of our own will be viable and help us further reduce costs,'' RP Goenka said.
The RPG group has incorporated Saregama Plc, a wholly-owned subsidiary of RPG Music International, in the UK to manufacture and market Indian CDs and audio cassettes in the UK, Europe, the US, Canada, Caribbean Islands and South Africa. RPG Music divested 28.38 per cent of its holding in Saregama Plc through a public offer in the UK. Through RPG Music Gramophone Co will receive Rs 14 crore over three years. In addition, it will continue to receive a royalty based on sales achieved by its subsidiary.
Gramophone Co H1 net up 51%
Calcutta, Oct 13: Gramophone Company of India Ltd has reported a 51 per cent increase in profit after tax to Rs 2.70 crore for the first half of 1999-2000 from Rs 1.79 crore in the first half of 1998-99.
According to the unaudited financial results of the company, sales, licence fees and other income amounted to Rs 60.47 crore as against Rs 53.58 crore -- a rise of 13 per cent. Profit from operations was 49 per cent higher at Rs 3.33 crore as against Rs 2.24 crore.
The price of the Gramophone Co shares has jumped from Rs 64.05 per equity share on April 1, 1999, to Rs 429.45 on October 11, 1999, at National Stock Exchange, company chairman RP Goenka pointed out
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.