IPCL: BETWEEN A ROCK AND A HARD PLACE
Article Abstract:
The turnover of the Rs2,900 crore Indian Petrochemicals Corp Ltd (IPCL) fell by 13 percent and its net profit by almost 50 percent. The Government of India holds about 60 percent stake in it. This will come down to 51.2 percent in the year 2001 after all the Euro bonds issued by IPCL, worth $175 million, are converted into equity capital. With IPCL already in debt, further borrowings are to be avoided. IPCL is also not structured along the lines of global petro-chemical companies. It is neither into high volumes and highly integrated business nor does it concentrate on a few products with dominant market shares. Merging IPCL with the Indian Oil Company (IOC) would be good. This would make it highly competitive. IPCL is to adopt a 2- pronged strategy. It is to reduce input costs by importing naphtha, ethylene dichloride and propane which are cheaper. It is to convert DMT/MEG into polyester yarn. This value addition would fetch it better margins. IPCL is also scouting for new markets to sell its polymers. Its engineers have developed thin-walled containers for ice-creams. IPCL is trying to promote the use of plastics for lining canals and storage caps in agriculture. (uh)
Comment:
Govt holds about 60% stake in it, which will come down to 51.2% in 2001 after Euro bonds issued by co are converted into capital
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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INFOSYS, NIIT GIVEN BERTHS IN SENSEX RECAST; SAIL, IPCL OUT
Article Abstract:
The scrips of Infosys, NIIT, Castrol and Novartis have been introduced into the 30-stock Bombay Stock Exchange sensitive index (Sensex). The scrips of Arvind Mills, Great Eastern Shipping, Steel Authority of India and IPCL have been removed from the Sensex. These scrips have been removed as they lack liquidity and do not represent the new economy. The four companies that have been inducted into the Sensex have a market capitalisation of Rs12,833 crore and the market capitalisation of the Sensex will now be Rs165,558 crore. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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