ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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ESSEL PACKAGING-Successful Technology Absorption

time and labour at the users' end. The rubber stoppers to be manufactured by the company will conform to international standards and will find a ready market both at home and abroad. The company has confirmed orders worth Rs 212 lakh from reputed companies like Wockhardt, Lyka Labs, ICPA Laboratories and Unichem Laboratories. The cost of the project, as appraised by Bank of India, is proposed to be financed by equity share capital (Rs 110 lakh from promoters and Rs 290 lakh from public), investment subsidy (Rs 25 lakh) and deferred payment credit (Rs 65 lakh). The board of directors comprise eminent personages like Juzar Khorakiwala, Prafull Sheth, Satish Nadkar, Gautam Adani, Saurabh Soparkar and Nimish Shah. To part finance the project, the company is entering the capital market on February 15 with a public issue of 29,00,000 equity shares of Rs 10 each at par totalling Rs 290 lakh. The profitability projections of the project as appraised by Bank of India are as follows: sales in the first year of operations will be Rs 985 lakh, in the second year Rs 1,126 lakh and in the third year Rs 1,266 lakh, on which the net profit will be Rs 160 lakh, Rs 180 lakh and Rs 201 lakh respectively. The company has already applied for listing on Ahmedabad and Bombay stock exchanges. The issue is lead-managed jointly by BOI Finance and Gujarat Lease Financing.

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