India“s Binani Industries Ltd. (BIL) is considering quitting the fibre glass business and entering lead manufacturing.
Mr. Braj Binani, Managing Director of BIL, said after the company“s 36th AGM t…
India“s Binani Industries Ltd. (BIL) is considering quitting the fibre glass business and entering lead manufacturing. Mr. Braj Binani, Managing Director of BIL, said after the company“s 36th AGM that the exit mechanism was likely to be finalized in a couple of months. BIL shifted its glass fibre business to Vishakha Enterprises (India) Ltd. (VEL), a wholly-owned subsidiary, with effect from October 1, 1998. VEL was then renamed Goa Glass Fibre Ltd. Mr. Binani said though production and sales from the Goa glass fibre unit were better in 1998-99 than in 1997-98, the overall market situation continued to be depressed. The group“s focus would be on lead, in addition to zinc and cement. He thus clearly suggested that the group no longer considered glass fibre as a core business. BIL and its wholly-owned cement subsidiary, Binani Cement Ltd (BCL), are chalking out expansion plans. BIL has decided to set up a 75,000/one lakh tpa primary lead smelter with refinery and alloy making facility in the western region. It is in the process of firming up sources of funds and technological tie-ups. It has also decided to expand, in two phases, the existing zinc smelter capacity at Binanipuram in Kerala to one lakh tpa from the existing 30,000 tpa. BCL has planned to set up a 1.5 million tonne clinker unit with a 50,000 tpa grinding facility in Gujarat. Incidentally, the joint venture project of another group outfit, Binani Cement LLC, with RMC Holding (BV) of the Netherlands in Dubai for five lakh tpa cement/slag has been completed. The plant would be commissioned soon. At the AGM, shareholders passed resolutions regarding accounts for 1998-99, dividend, lead smelting project and delisting of its shares from Chennai and Kochi SEs. The meeting also discussed at length a minority shareholder“s notice for directorship, which was put to ballot. The results, though a foregone conclusion as the management explicitly opposed the move, would be declared later. Zinc production during 1998-99 at 31,176 tonnes represented 103.92 per cent capacity utilization. BIL is also restructuring its debts. Mr. Binani said the average interest rate during 1998-99 was around 17%. Attempts were being made to bring the average to 15%. BIL registered a PAT of Rs 8.35 in 1998-99 (Rs 12.13) on a turnover of Rs 265.44 (Rs 225.8). It maintained dividend at 15%.