RAYMOND LTD: BOUNCING BACK
Article Abstract:
The flagship of the Singhania group, Raymond Ltd, after an unsuccessful diversification into cement and steel, is on a turnaround path at present. In 1996-97, the company recorded a 90 percent drop in its profit to Rs9.4 crore, due to its diversification projects. But in 1997-98, its net profit increased by 377 percent to Rs45.02 crore on a turnover of Rs1192.95 crore. As part of its restructuring plans, the company hived off its steel division into a joint venture with EBG Gesellschaft of Germany for $106.7 million. The steel production improved by 15.6 percent from 0.9 lakh tonnes in 1996-97 to 1.04 lakh tonnes in 1997-98 and sales grew by 30.6 percent from Rs174.9 crore in 1996-97. The cement division which was dogged by power problems in 1996-97, accounted for 29.8 percent of the total turnover in 1997-98 by selling 19.32 lakh tonnes of cement, mostly in the north. Raymond is likely to set up a thermal power plant close to its 2.25 million tonnes cement plant in Madhya Pradesh. Apart from this, another 6 mw DG set will be installed for its 2.25 million tonnes cement plant in Bilaspur. The textile division, which accounted for nearly 69 percent of its total turnover, recorded a 35 percent growth in sales to Rs821.9 crore. In terms of volume, the sales rose by 23.8 percent to 254 lakh metres during 1997-98. (gsh)
Comment:
Registers increase in net profit by 377% to Rs45.02 crore on turnover of Rs1192.95 crore in 1997-98
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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GRASIM TAKES 42% OF SDCC, TO MAKE OPEN OFFER FOR 20%
Article Abstract:
The Aditya Birla group flagship, Grasim Industries has acquired 32.42 percent stake in Shree Digvijay Cement Company (SDCC) from the SK Bangur and KK Bangur groups at a cost of Rs142.30 per share, aggregating Rs34.40 crore. In September 1998, the company will make a statutory open offer to the public for 20 percent stake at the same price. Grasim's holding in SDCC will go up to 42.41 percent after acquiring the entire stake of the Bangurs in SDCC. Last week, it acquired around 9.9 percent stake at the same price as the agreed acquisition price. (gsh)
Comment:
Sells 32.42% stake in Shree Digvijay Cement with KK Bangur group at cost of Rs142.30 per share to Grasim Industries
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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BIRLAS TO BUY OWN SHARES
Article Abstract:
The AV Birla group is likely to buy shares of Grasim Industries (GI) in the open market. The group's stake in GI has fallen from 22 percent to 20 percent due to the restructuring of its cement business. Around 9 lakh share of GI are likely to be written off due to cross-holdings of Indian Rayon (IR). The group plans to increase the stake in GI through shares bought in the open market in compliance with the order of the Securities and Exchange Board of India. (rk)
Comment:
Is likely to buy shares of Grasim Industries in the open market
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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