RULING MARKETS, KINGSIZE
Article Abstract:
ITC Ltd (ITC) has reorganised its businesses. It has sold off ITC Classic to Industrial Credit and Investment Corporation of India (ICICI). ITC has paid Rs350 crore in the ITC Classic deal. It had to pay a penalty of Rs803 crore for evasion of excise duty between 1984 and 1987. It has deposited Rs215 crore to the court. ITC Agro-Tech was sold to ConAgra of the US and ITC Zeneca, the seed manufacturing company, was merged with the agri-business unit. ITC took over the Manthralayam plant of ITC Agro for Rs125 crore and later leased it back. ITC had suffered losses of Rs800 crore in its financial services business. In the last two years, it has made a cash outlay of Rs1,200 crore for the write off of ITC Classic liabilities, buying of group company shares and Cegat pre-deposit. ITC is focusing on travel and tourism business, paperboard and packaging and tobacco businesses. It has brought out variants of its Wills and Goldflake brands. It has launched new brands in the Classic range and foreign brands in the king- size cigarette market. The king-size cigarette market is growing at five percent currently. ITC Bhadrachalam Paperboards is setting up a new board machine at a cost of Rs1,600 crore with a capacity of 2.5 lakh tonnes per annum. It has invested Rs640 crore in setting up a modern paperboard plant. ITC has done restructuring in its organisation by decentralisation. ITC Global of Singapore is under the judicial management of KPMG Peat Marwick. ITC is projected to post a profit of Rs620 crore to Rs630 crore and an earnings per share growth of 60 percent to Rs25 in 1997-98. In 1996-97, its market share increased by four percent to 68 in the domestic cigarette market. ITC had posted a sales of Rs5,960 crore and a net profit of Rs347 crore in 1996- 97. ITC is expected to post a 12 percent to 15 percent growth in sales to Rs6,500 crore in 1997-98. (rk)
Comment:
Reorganizes bsnss which includes sale of ITC Classic & payment of Rs803 crore for evasion of excise duty, among others
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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JCT ENTERS RESTRUCTURE MODE; MAJOR ASSETS ON SALE LIST
Article Abstract:
The Rs970-crore JCT Ltd has drawn up a restructuring exercise to tide over its financial problems. Financial institutions and banks have recommended the sale of the steel wire division, cotton textiles unit, ginning units, prime real estate in Delhi and Mumbai and land. The company plans to hive off its polyester division into a separate company, allot shares to JCT shareholders and convert part of the loans into equity capital. The restructuring proposals include future investments in synthetic fibres, textiles at Phagwara in Punjab, investments in the corporate office at Delhi and bringing in a strategic partner into the company. For the six months ended September 30, 1997, JCT Ltd recorded net loss of Rs68.07 crore on an operating income of Rs419.21 crore. Its interest outgo was Rs54.54 crore. (gsh)
Comment:
Draws up restructuring exercise to tide over financial problems
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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SCL TO SET UP RMC PLANTS IN M'RASHTRA
Article Abstract:
Saurashtra Cement Ltd (SCL) is planning to set up several ready mix concrete (RMC) plants in Mumbai and Maharashtra through a joint venture with Tarmac, a heavy building materials and construction services company of the UK. A joint venture company called Star Building Materials Ltd has been set up for the purpose, in which SCL holds a 10 percent stake while Tarmac holds a 90 percent stake. SCL has the option of buying back shares in 2000-2001. The RMC units will also produce building materials like blocks, pre-cast and pre-stressed elements. (khr)
Comment:
Saurashtra Cement Ltd (SCL) is planning to set up several ready mix concrete (RMC) plants in Mumbai and Maharashtra through a joint venture with Tarmac, a heavy building materials and construction services company of the UK.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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