Will outsourcing arrangements help minimise locational disadvantages?
It is true that location of our plants, both the plants are located in Maharashtra Bhandup and Nashik, are not cost effective due to higher distribution cost and octroi that the company pays. Our Hyderabad and Varodra units will not serve the purpose of reducing distribution cost, as these plants are exclusively for scooter and motorcycle tyres, which attract moderate freight cost compared to truck tyres. The company has no plans to set up grassroot plants either, which is a very expensive proposition. We are trying to neutralise our freight cost through outsourcing from Sri Lanka to cater the market in the south and from Kolkata to serve the eastern markets. What is the target for the current fiscal 2002-03 in terms of sales and profit? Our turnover for FY01 stood at Rs 1,200 crore, while it was Rs 1,380 crore during FY02. Similarly, we are looking at a turnover of over Rs 1,500 crore in FY03. Our target for the next financial year 2003-04 is over Rs 1,800 crore. As I said, we will ac
