Chairman R Mody, addressing the 65th annual general meeting and the company's first in Calcutta, said that his company is open to acquisition provided it does not clash with the existing Nivea portfolio owned by the German-based Beiersdorf. He explained that in the event the company comes across any fast moving consumer goods brand, it is open to acquisition.

Mody also noted that JL Morison, which has already introduced 30-odd products from the Nivea portfolio, plans to introduce five to six brands annually, after carefully test marketing them. This is a modification from the company's earlier stand of introducing one brand every month.

The company claimed to have posted an increase of 212 per cent in net profit to Rs 2.06 crore in fiscal 1999-2000 from Rs 66 lakh in the previous year.

However, taking into consideration the comment of the statutory auditor SR Batliboi & Co, its profits have been overstated by Rs 1.37 crore.

The company did not make any provisioning on three items that would have lowered its gross profit to Rs 69 lakh, a mere 4.5 per cent increase over that of fiscal 1998-99.

At present, the company has two plants - at Waluj in Aurangabad and one ancilliary unit at Koikhali in West Bengal. The Waluj plant, commissioned last year, is yet to be operated at its full capacity. The other plant in West Bengal manufactures Emoform which has a range of dental care portfolio.

The company has acquired the licence and formula from Germany's Dr Wilt & Co. Under an agreement with Emoform, JL Morison (India) has to set up a brand new plant by 2002. Neogitaions are on with the partners whether to set up the unit in Mumbai or Calcutta. Since an ancillary unit of Emoform already exists in West Bengal, the Raghu Mody-led management is keen on another unit in the state.

According to the licensee agreement with Beiersdorf, all products will have identical formulations worldwide. Despite this enhanced level of standardisation, the company's managing director S Chakrabarti noted, the prices of the products "should not" increase during the year.

Eight out of the nine resolutions on the agenda were passed, with the company withdrawing the nomination of executive director C Lahiri who has gone abroad. The management got the shareholders mandate on two crucial resolutions concerning the sale of a Mumbai property and taking a Rs 25 crore loan.

Mody said the company proposes to sell the land at its Mumbai plant, which has ceased to operate since March 10, 1998. The chairman noted that the management has received feelers from prospective buyers with offers close to Rs 10 crore for the property.