TAC weighing merger option

Tuticorin Alkali Chemicals and Fertilisers (TAC), part of Spic group, hopes to tide over erosion in its net worth with sufficient improvement in performance this year, chairman A. C. Muthiah informed …

Tuticorin Alkali Chemicals and Fertilisers (TAC), part of Spic group, hopes to tide over erosion in its net worth with sufficient improvement in performance this year, chairman A. C. Muthiah informed shareholders. For the year ended 30 September 2001, it had reported a net loss of INR 170,000,000.69. The company was considering the erosion of over 50% of its peak net worth and report the matter under Sick Industries Act. Muthiah said TAC posted a modest net profit of INR 3,600,000.18 for the quarter ending 31 December 2001. This has now improved to INR 50,000,000 in the first five month period (till February 02). The management is looking at various options including the scope for merging it with other group companies, he said. He said TAC has taken up stringent cost cutting measures by rationalising manpower through VRS and restructuring marketing operations. it has stepped up sale of ammonium chloride. For soda ash, MNC, Saint Gobain is a major customer, he said.