ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Diversifying into Chemicals

Hansavivek WESTERN INDIA ERECTORS is diversifying its activities into chemicals. It is setting up a project at Roha in Maharashtra. Civil construction, and installation of plant and machinery are in progress. Trial runs of Tobias and J-acid plants are expected to commence very shortly and the full chemical complex would go on stream by June 1981. Meanwhile, a research and development laboratory and pilot plant are being established at Roha to provide technical support for both plant operations and marketing. The R and D unit will work to improve arid modify the processes for cost reduction and improvement of yields and quality of the company's products. It will also develop new product lines in the fields of dye intermediates, basic drugs and pesticides for import substitution and otherwise. The company is also participating in a joint venture in Saudi Arabia, It has invested Saudi Rivals one million, being 50 per cent of the share capital of the The Week's Companies joint venture company 'Arabian Erectors', On account of vast industrialisation and various other developments in that country, there is considerable potential for operation and maintenance work. Within a few months of setting up the venture, the Arabian company has secured from Royal Commission of Saudi Arabia a contract of the value of about Rs 12 crore for operation and maintenance of permanent waste water treatment plain at Al-Jubail. The job has been subcontracted to WIE. During the year ended June last, WIE expanded its turnover from Rs 8,43 crore to Rs 11.73 crore and earned a gross profit of Rs 1.60 crore against Rs 1.50 crore in the previous year. These figures show that profit margins have been squeezed despite considerably higher turnover. Net profit is Rs 136 crore (Rs 1,29 crore), since as before there is no tax liability. Dividend stepped up 4 points to 20 per cent on an enlarged capital is covered 11 times by earnings against 15.87 times previously. As at the year-end, the company had reserves to the tune of Rs 3.68 crore against equity share capital of Rs 93 lakh. The company's shares were keenly sought by investors even at sharply rising prices in the stock market. The Rs 10 shares are now quoting at around Rs 80 each. The company had made a public issue of 1,92,112 equity shares of Rs 10 each at a premium of Rs 5 per share. The issue was oversubscribed more than 15 times within three days of its opening. The company also issued 2,88,168 shares at the same premium by way of rights shares in the proportion of 1 : 2. The rights shares as well as the shares issued to the public were allotted

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