Relpol looks to lower its costs by opening subsidiary in India

Żary-based electrical relays producer Relpol is likely to dispose of its remaining shares and sell them to financial institutions and in this way the company will become 100% free-floated. This would also mean that it might record a gross profit higher by around zł. 700,000. According to Parkiet, Relpol is conducting preliminary talks on a large contract for selling its relays, but its representatives refused to name the other party. Relpol has already prepared a draft of its 2004 financial plan. "We want to improve our revenues by 15%, but this might change. If we sign the contract, then we will have to build a new production line. This in turn would mean that our revenues would increase by about 30%," said Relpol president Mariusz Wróbel. The firm also plans to increase the production of plugs and sockets, which account for about 14% of its turnover. "In order to achieve this, we will set up a subsidiary in India where production costs are lower," said Wróbel. (Parkiet, p. 4) M.M.