ATUL PRODUCTS-Keen Competition

Registered Export House by the government of India.
S M, whose much-awaited glycols project went on stream in June 1993, has been able to increase its market share in speciality chemical products through development of various chemicals based on ethylene oxide. Faced with the problem of decontrol of molasses and diversion of alcohol to the potable sector, S M has developed technical alternatives for using synthetic alcohol. It proposes to import alcohol and, to meet the long-term requirements, is setting up 3 Rs 100-crore distillery project. The company has also proposed a rights issue of Rs 78.42 crore of FCDs to be converted after 12 months from the date of allotment, at a nominal premium of Rs 6 per share on conversion. The funds will be utilised to meet the overall project cost, long-term working capital requirements and capital expenditure for expansion in capacity. The soya division has performed well both on the domestic and export fronts. Export turnover jumped from Rs 1 crore to Rs 18 crore in 1992-93 and the company expects that in 1993-94 this division would have a 50 per cent share in total exports. After the success of its snack foods, S M has introduced biscuits in the Bombay market. The company is also planning to increase the soya bean crushing capacity to 600 mt per day during 1993-94.