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| INDIA - Mangalam Timber to go out of BIFR net soon |
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2005/11/28
The Orissa-based Mangalam Timber Products Ltd, a B.K. Birla Group company, will be out of the BIFR (Board for Industrial & Financial Reconstruction) net shortly. According to G.S. Gupta, Managing Director of Mangalam Timber, the BIFR hearing was held on November 15, this year, and a decision on this matter has already been taken. "We are expecting the formal notification from BIFR and it is likely to come any day. Once we receive the de-registration notice we are formally out of the BIFR,". Operations of the company were commissioned in 1987 and since then it was in the red. It had even faced closure. Mangalam Timber, a major producer of medium density fibre board (MDF), has been with the BIFR for the last seven years. However, for the year ended March 31, 2005, the company registered its highest ever turnover of Rs 61.72 crore as against Rs 43.66 crore in the previous financial year. Net profit jumped to Rs 2.88 crore from Rs 48.37 lakh during 2004-05. Accumulated losses of the company (after adjustments of deferred tax assets worth Rs 7.89 crore) had dropped to Rs 6.41 crore from Rs 19.60 crore on March 2004. Despite its financial weakness, Mangalam Timber in the last few years has started farm forestry under the public private participation scheme in Orissa, Chhattisgarh and Andhra Pradesh. Till 2004-05, the company developed 27,655 acres of land. During 2005-06, it had set a target of adding another 20,000 acres in all these States. "Against the target, we have managed to start farm forestry in 16,500 acres," Gupta said. In another development, Kesoram Industries Ltd (another B.K. Birla Group company) has increased its holding in Mangalam Timber by acquiring 5.35 per cent from Industrial Investment Promotion & Investment Corporation of Orissa Ltd (IPICOL), a State Government outfit, for Rs 2 crore. IPICOL held 9.80 lakh equity shares of Mangalam Timber. Kesoram Industries paid Rs 20.31 for each equity share of Rs 10 face value held by IPICOL. The board of directors of Mangalam Timber has also revoked its earlier decision of reducing the face value of its equity shares from Rs 10 per share to Rs 4 per share. In 2004, the company had commissioned a 40 tonnes per day formaldehyde plant. It was set up at a cost of Rs 2 crore. This plant is expected to generate 10 per cent of the company's revenues and would also help it in its backward integration. |
| Source:http://www.indiaplyweb.com |
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