GCIL set to acquire chemical factories in Europe and the USA

Kolkata, Sept 08 (UNI) Gwalior Chemical Industries Limited (GCIL), a major exporter of niche chemical and agro-chemical products to many a countries, has identified a few closed chemical units in the USA and Europe for outright purchase before relocating them for business purposes.

This was announced here today by GCIL Chairman Ashwin Kothari while speaking to newsmen about his plan to enter the Capital market with Initial Public Offering (IPO) for raising Rs 180 crores through book building process for the expansion programme.

Referring to the tremendous growth in demand in International market for GCIL's chemical products particularly- Benzyl Chloride, Benzal Chloride and Benzo Tricholide leading to about 150 per cent increase in the company's export volume last year, Mr Kothari said under the new plan they had decided to take over the full management control of three or four medium sized chemical units in the USA and Europe before relocating them suitably to cater to the local demands. He, however, refused to divulge the identity of these shortlisted foreign unions for obvious reasons.

About the rationale behind such decisions, Mr Kothari said, "This would not only save a lot of time in terms of exporting hazardous products from India to their final destinations on the other side of the universe on time, but also to save a lot of money to execute the whole process".

Moreover, he said, GCIL was looking for "right opportunities" to set up exclusive ware-housing facilities in Japan and in the USA where GCIL's exportable finished products could be storted for immediate delivery and meeting other export commitments in phased manners.

GCIL planned to invest more than Rs 100 crores to meet these expansion proposals, he said adding that while majority of funds would come from the IPO, the rest would be met through internal accruals.

Asked about his plans to jack up the domestic market since 54 per cent of the total production was aimed at meeting the growing internal demand, Mr Kothari said keeping this in mind they were planning to add two more factories to the present tally of seven, situated in Gujarat and Madhya Pradesh by next year with an ivestment of Rs 60 crores and setting up a co-generating plant at Nagdain, MP.

"This would also go along way in increasing the GCIL's present capacity by at least 30 per cent", the Chairman pointed out.

About the revenue generation, he said last year the overall business volume was to the tune of Rs 1700 crores, of which Rs 534 crores came from exports which recorded a stupendous 150 per cent jump from the previous year because of higher growth in demand. The profit after tax during the period stood at Rs 52.3 crores, he said.

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