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GTC INDUSTRIES-Diversification Programme

competition following a sharp fall in international prices of caustic-chlor and reduced duties announced in the budget. The company produced 156 mt of thermoplastic polyurethanes and achieved a sale of 164 mt in 1992-93 but the slow growth of the TPU resins market led to lower sales realisation. Excess capacity and a consequent fall in selling price led to lower margins from the Mettron division as well. The revamping of the company's chloromethanes plant to improve efficiency was completed during the year. The company reportedly saved Rs 96.6 crore in foreign exchange through import substitution and succeeded in reducing the proportion of imported raw material in total raw material consumed from 56 per cent in 1991-92 to 49 per cent. Following implementation of a voluntary retirement scheme by the company at Mettur dam in September 1992, 220 employees opted for voluntary retirement leading to a one-time expenditure of Rs 3.56 crore. The company has deferred the expense incurred as compensation under the scheme and plans to write it off over a period of 25 months. With a view to setting up new projects and optimising and expanding existing activities the company is exploring strategic alliances with world leaders. It plans to float a $ 40 million euro-issue to part finance the expansion of its PVC capacity to 60,000 mt, revamping of the monomer facility, expansion of its chloromethanes capacity to 22,000 tpa and other projects which will be contra-cyclical to its existing activities. So as to maintain management stability, the company plans to offer 36 lakh warrants to the promoter group which will be convertible into shares within a period of 18 months from the date of allotment.

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