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

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Mideast India

Mideast India MIDEAST INDIA is the flagship company of the MESCO group. The company has once again achieved excellent performance for the year ended March 31, 1993. It has realised a turnover of Rs 70.61 crore, registering an increase of 96 per cent, earned a net profit of Rs 9.86 crore, an increase of 198 per cent, and an EPS of Rs 27.16. The company made a public issue of share capital in January 1992 and has fulfilled the promises and commitments made to its shareholders. It has successfully completed both phases of its shoe project with an installed capacity of 12 lakh pairs pa and their components. It has set up a fully integrated shoe factory (the only one of its kind) with state-of- the-art machinery from Torielli, Granncci af Italy and BUSM of UK. Bally International of Switzerland has provided the technical know-how and upgraded the shoe project to manufacture premium quality shoes meeting international standards for the highly competitive and fashion-conscious European markets. The group has turned its attention to pharmaceuticals and set up an ultra-modern unit in Dehradun which has begun exporting to markets like Europe; Russia, Africa and the Far East. The biggest feather in its cap has been the export of pharmaceutical machinery to the west. For bulk drugs and fifth generation antibiotics a plant is being set up to Hapur, conforming to USFDA standards MESCO will be manufacturing under licence from MLR/, a major Gciman manufacturer of over 50 life-saving drugs, MESCO group took over Bokiyu Tanneries, a BIFR company, and in just one and a half years twined it round to show profits of Rs 30 lakh this year. The company also has a management contract for a tannery in Zambia, ensuring supply of quality hides and skins. In Russia, Mideast has set up Marita Mesco, a joint venture for leather, tanning, processing and finished products. Mideast also has its own trading office and warehouse in Germany catering to the needs of the European market. It has pro moled MESCO Mauritius, a wholly own- ed subsidiary, in Mauritius for the manufacture of bulk drugs and empty hard gelatine capsules at a cost of Rs 20 crore. The group has now also entered the core sector of steel for export, Mideast Integrated Steels, an export oriented unit is being set up in Orissa at a cost of Rs 10 billion. The technology for this fully integrated steel plant is being imported from CMIEC of the People's Republic of China, the world's largest makers of iron and steel. CMIEC will also be participating in the equity capital with a con tribution of $ 10 million in the very first stage of this prestigious project. The collaboration agreement has been signed and construction began in January 1993. Another group company Mesco Airlines has been set up to cater to the growing demand in civil aviation. A fleet of helicopters will cater to the need for specialised aerial spraying, Mesco Airlines will also set up a fleet of air taxis and the only private helicopter pilot training school in Asia. The air charter service has already begun. To part finance its expansion, Mideast India is making a rights- cum-public issue of fully convertible debentures aggregating Rs 52 crore. The debentures bearing 16 per cent interest will be converted into equity in two parts; part A on allotment and part B 15 months thereafter at a premium of Rs 25 and Rs 45 respectively for the rights issue and Rs 40 and Rs 60 for the public issue Jhunjhunwala Vanaspati incorporated in 1989, Jhunjhunwala Vanaspati (JVL) is an existing company earning profits and paying dividend. It declared a maiden dividend of 15 per cent in the very first full year of operations ended March 31, 1992. The company is engaged in the manufacture of vanaspati, marketed under the brand name 'Jhoola'. It is entering the capital market on May 4 to part finance its expansion project from 25 mt per day to 100 mt per day of vanaspati. Commercial production started in March 1990 and turnover during the current year ended March 31, 1993 is about Rs 26 crore against Rs 9 crore in 1991-92. Profit is also expected to go up substantially. The company has installed machinery to achieve 60mt per day and the plant is expected to run at full capacity of 100 mt from this August. The project has been appraised by the CRB Capital Markets. Cost of the expansion project is estimated at Rs 752 lakh and it is to be financed with promoters' equity of Rs 152 lakh, public issue of Rs 540 lakh and in ternal accruals of Rs 60 lakh. Projections at 70, 80 and 90 per cent utilisation of expanded capacity for the years 1993-94, lakh, Rs 8,489 lekh and Rs 9,550 lakh,

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