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| Sunday, February 05, 2012 You are on : Home >> News >> TechNova News |
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December 28, 2004 Yet another price increase? Valued Friend & Customer, As you know, when an organisation believes in delivering what it promises, there are occasions when it has to make hard choices. Especially in a situation where the organisation has made a promise that it cannot deliver for no fault of its own. TechNova is faced with such a choice at this time. When we passed on the last Aluminium price-increase to you in July 2004, we made a commitment that we will not increase our plate prices until March 2005. This promise was based on a fixed-price contract that we had entered into with Indian Aluminium for supply of Litho-grade Aluminium for the period June 2004 to March 2005. As it happens, despite the fixed-price contract, INDAL (now known as HINDALCO) has increased its price of Litho-grade Aluminium by Rs. 5.00 per Kg, effective November 1, 2004 (click here to view the letter). They have been driven to do so due to the unprecedented price-increase in LME (from USD 1,700 to USD 1,815 per ton) & that of NALCO (from Rs. 87,950 to Rs. 92,950 per ton) during the period July 2004 to November 2004. As on December 22, 2004, LME price stands at USD 1,915. Please see the charts and the excerpt from Economic Times, Mumbai of December 23, 2004 that follow. Also reproduced is an excerpt from Economic Times, Mumbai of December 20, 2004 indicating the forecast of aluminium price trends in the year 2005.     The hard choice before TechNova is should we pass on this cost-increase to our customers, or should we stand by our commitment of nil price-increase until March 2005 and absorb the enormous cost-increase? This has been the most difficult decision facing us in recent times, as it undoubtedly means recolouring our bottomline from black to red. As our Leadership Team sees it, in reality, we do not have a choice. We are committed to our values and we must, therefore, absorb the cost-increase regardless of the consequences. Therefore, we will hold our prices firm until March-end, 2005, at which time we will revise the prices. All we can do at this stage is to redouble our efforts to reduce our costs. We hope to achieve this without compromising our customer-service levels. Any support that you can offer us at this difficult time will be most sincerely appreciated. Should you wish to update yourself on the Aluminium prices, please feel free to contact : |
| Name | : | Mr. Ashutosh Gupte |
| Designation | : | Manager (Western Region), Sheet Division, INDAL |
| : | ashutoshgupte@adityabirla.com | |
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We sincerely hope that we will receive your whole-hearted support for our endeavour to implement this inevitable price-increase in the least painful manner. Thank you! With best regards, Pranav Parikh Chairman & Managing Director TechNova Imaging Systems (P) Limited News Update Latest on aluminium price increase : Subsequent to the above communication dated 28th December, 2004, both Nalco & Hindalco have again increased the price of all grades of aluminium by Rs. 2/kg w.e.f 3rd January, 2005, amounting to a total of Rs. 7/kg increase since 1st November 2004. | ||
Also View : PS Positive Plates Price Revision dated 1st July 2004
