Ema India rakes in Rs 20 cr

On the back of buoyancy in automobile manufacturing, Ema India, the Kanpur-based honing machine and induction-hardening machine maker, has put in its best performance since inception 30 years ago. It has clocked a turnover of Rs 20.3 crore in 2004-05, as against a turnover of Rs 12 crore last year.

However, due to increasing competition, profits have been under squeeze, and despite a much higher turnover these have remained at last year's level of Rs 1.10 crore.

Many multinationals have started their own outfits and some local players have combined to bring down the profits, as they are offering cheaper prices.

"We have not yet had our final board meeting," said Ranjana Bhargava, director, finance, but "we have never missed giving dividends all through our history."

The principal clients of the company--Bajaj Auto, Tata Motors, Hero Honda, and Cummins--are all doing extremely well.

"Moreover, within the range of its products, the honing machines, induction hardeneing machines, some new models have been developed and made within the country for the first time," said Prdeep Bharagava, managing director.

"We are expecting the demand for the product to remain buoyant for at least the next two years. It has made a breakthrough and exported a honing machine to Iran. Ten per cent of the turnover has been earned through exports," Bhargava said.

Its paid-up capital is Rs 1.0050 crore and free reserves Rs 8.9458 crore.