INIO continues to transfer funds to the private sector
Iran National Industries Organization (INIO) has grated 785.4 billion rials worth of shares from its affiliated units to the private sector, as a means of assisting the government's privatization plan of the Second Economic Development Plan (1994-1999).
The organization sold shares worth a total of 376.6 billion rials on the Tehran Stock Market (TSE)—177.2 billion rials were sold through negotiations— 121.5 billion rials ceded as factory shares, and the remaining 110 billions were sold through auctions.
Following the recent deal, INIO plans to make radical changes to improve productivity and generate employment. The organization has already undertaken measures to improve the management and financial systems of its units, and profitable share results were already released on the TSE.
The organization has already relocated most of its high value-added units, and subsequently succeeded in raising the production volume of its weaker units by more than 18 percent between the beginning and the end of the second plan. During this period, the ratio of sales to production rose from 92 percent to 96 percent.
With the improvement of both the quality and quantity of exports, the organization's total value sharply rose by nearly 41 percent between 1998 and 1999—from $19.6 million to $27.6 million.
The organization stated that it will place special emphasis on its strategy with regards to consumer satisfaction, reached through diversification and marketing. – (Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)