A P Rayons

BALLARPUR INDUSTRIES, flagship company of the Thapar group, which is India's third largest industrial house in terms of turnover, is making a public issue of 71,50,000 equity shares of Rs 10 each at a premium of Rs 165 per share, aggregating Rs 125.12 crore on April 6 and a rights issue of 148,59,856 equity shares of Rs 10 each at a premium of Rs 115 per share aggregating Rs 185.75 crore which is opening on April 19. The main objects of the issue are to raise funds to partly finance rehabilitation of Sewa Papers at Jeypore in Orissa to cost Rs 116.52 crore at Jeypore in Orissa and to repay term loans and repurchase debentures. The programme for Sewa Papers envisages expansion of capacity from 33,000 tonnes to 45,000 tonnes per annum and setting up of a pulp mill. Trial production on bought-out pulp is expected to commence this month and commercial operations shortly thereafter. The installation of another paper machine, which will increase the daily production capacity to 150 tonnes, is expected to be completed by September 1994. To strengthen the capital base of the company, improve the debt:equity ratio and reduce interest liability, it has been decided to prepay loans aggregating Rs 13,615 lakh and repurchase debentures aggregating Rs 3,880 lakh. The company's total requirement of funds is estimated at Rs 338.37 crore and being met with the public issue of Rs 125.12 crore, rights issue of Rs 185.75 crore, issue of preference shares with warrants of Rs 2.50 crore and internal accruals of Rs 25 crore. During the four years from 1987-88 to 1991-92, the company's turnover increased from Rs 371 crore to Rs 874 crore (135.58 per cent) and so also operating profit from Rs 39.82 crore to Rs 147.72 crore (270.97 per cent), PBT from Rs 5.72 crore to Rs 20.01 crore (249.83 per cent) and PAT from Rs 4.81 crore to Rs 20.01 crore (316.00 per cent). This is in spite of the company acquiring sick units like Sewa, Titaghur Mill No 3, MSIL, BIC and BCR. For 1992-93, expected turnover is Rs 1,042 crore and for 1993-94 it is Rs 1,233 crore, the corresponding figures of operating profit being Rs 184 crore and Rs 220 crore, of PBT Rs 37 crore and Rs 88 crore and of PAT Rs 37 crore and Rs 62 crore. The company is highly diversified, being engaged in the manufacture and sale of ordinary and superior varieties of writing, printing, Industrial and speciality papers, chemicals, detergents, glass containers, building materials, etc The company is the largest manufacturer of paper in the country, and the sole manufacturer of certain speciality papers. Its paper mills at Ballarpur and Yamunanagar have been operating at around 95 per cent capacity. The company's diversification has included a pioneering effort to manufacture construction material using waste material like flyash. A autoclaved aerated concrete is an innovative building material which is positioned to be a substitute for conventional building material like bricks. The plant at Palwal in Haryana has been set up in collaboration with Ylong International of Germany. Manufacture of hydrogenated vegetable oil and refining and marketing of corn oil are the activities made up of the foods division while the company has now entered the arena of manufacture of refined sunflower oil. The newly formed joint venture with Reitzek of Switzerland has already begun export of gerkins and other vinegar- preserved foods.