Caustic & Chemicals Ltd. (BCCL), has entered the capital
market with the a rights issue of 1,56,00,000 equity shares
of Rs 10 each for cash at par aggregating Rs 15,60,00,000
in the ratio of two equity shares for every equity share
held. The issue opened on 18 February 2003 and will close
on 17 April 2003.
issue is being made to part-finance the coal-based captive
power plant set up by the company and to meet the expenses
of the issue. The 30MW coal-based power plant is estimated
to cost Rs 146 crore (as against the original estimate
of Rs 152 crore) and the company has already spent Rs
126.37 crore till 30 November 2002 towards the project.
is a joint venture between Bihar State Industrial Development
Corporation (26-per cent equity), Hindalco Industries
(20-per cent) and Pilani Investments and Industrial Corporation
(5 per cent). BCCL has an installed capacity of 51,048
TPA of caustic soda, 26,400 TPA of liquid chlorine, 29,040
TPA of hydrochloric acid and 30MW captive power. The plant
is located at district Palamau in Jharkhand state.
soda manufacturing is extremely power-intensive. The companys
operation in the past had been adversely affected by inadequate
availability of power, coupled with higher power tariff
charges, thus adversely affecting the quality of its caustic
soda production. In order to reduce its power costs, and
ensure availability of power, the company has set up the
captive power plant, which was commissioned in January
along with the improvement in the caustic soda market,
has helped the company report improved financial performance
in FY 2002. Net sales and profit before tax for FY 2003
( nine months ended December 2002) were Rs 6,732 lakh
and Rs 1,153 lakh.
the year ended 31 March 2002, BCCL made a profit after
tax of Rs 393 lakh on a total income of Rs 9,222 lakh.
For the six-month period ended 30 September 2002, the
profit after tax was Rs 442 lakh on a total income of
Rs 5,217 lakh.
company has received ISO 14001 certification for environmental
management systems and has been the recipient of the gold
medal (Indira Gandhi Memorial Award, 2000-01) for excellent
is a major player of caustic soda in the eastern region,
and Hindalco is its major customer. Other customers like
large steel manufacturers are also located in close proximity
of the plant. The company plans to focus on maximising
the production of caustic plant, accompanied by optimum
operation of the captive power plant.