ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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STC Fails to Restrain Bulls

POLYCHEM has completed expansion of its styrene plant to 10,000 tonnes per annum and has already received a letter of intent for further -expansion to 14,000 tonnes. When the second expansion programme is completed, the Company will be able to keep its polystyrene plant working at full capacity and also supply styrene to other users. Arrangements have been made with NOCIL for supply of benzene and ethylene. The Company has also entered into a technical collaboration agreement with Asahi-Dow of Japan for manufacture of acrylonitrile-buta- diene styrene-based plastics, In addition, a merchant styrene plant and facilities for manufacturing styrene- based products at Koyali in Gujarat are under consideration. The Company's present capacity for various plastic raw materials is 1 lakh tonnes but on the basis of projects under implementation and/or licensed it is likely to go up soon to 2 lakh tonnes. As against this demand at present is hardly 60,000 tonnes. The Chairman, Ramdas Kila- chand, has urged government to permit diversification which, he points out, wilt require faster and larger machines, more moulds and dies and specialised facilities to fabricate intricate parts to close tolerances and improved technical skills to operate them. Polychem's production and sales during the y-ear to March last declined to 5,300 tonnes owing to shortage of molasses/alcohol. Turnover was only Rs 10 lakhs lower at Rs 3.69 crores but, with margins depressed, gross profit fell by Rs 23 lakhs to Rs 85 lakhs. Net profit was Rs 28 lakhs (Rs 41 lakhs), but the maintained dividend of 16 per cent on the capital as enlarged by a onc-for- four bonus issue was still covered 1.5 times.

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