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DEBT
SERVICING
The company has been regular in servicing its debts.
There is no default, either in the payment of interest or in
the repayment of loans, on due dates, to the Financial
Institutions and Bankers, from whom the company had taken
loan. The company anticipates no difficulty in servicing its
debts already taken and to be taken in future, from the
Institutions and Banks, in view of its continued financial
soundness.
NEW PROJECTS
COMMISSIONED
SODIUM FORMALDEHYDE SULF
OXYLATE PLANT (TANGOLITE)
The company has set up a Plant for manufacture of
Sodium Formaldehyde Sulf Oxylate, each of 500 tonnes
capacity, per annum. The Sodium Formaldehyde Sulf Oxylate
Plant was commissioned in March 1991.
The plant was set up at a cost of Rs.2 Crores by
availing finance from the Industrial Credit and Investment
Corporation of India Ltd. (ICICI) through Buyers Line of
Credit. This was duly repaid in full by March
’96.
The product has been well received in the market and
is comparable to similar products available in the market.
It is being marketed, throughout the country, under the
brand name of ‘Tangolite’.
WIND MILL PROJECT
The company has set up 12 Wind Electric Generators of
225 KW each, at Kayathar, in Thirunelveli District, in Tamil
Nadu, with the financial assistance of Rs.2 Crores from the
Industrial Development Bank of India (IDBI) and Rs.6.80
Crores from the Indian Renewable Energy Development Agency
Ltd. (IREDA). All the 12 windmills have been duly installed
and commissioned and the energy generated has been drawn for
our factory at Karaikudi.
The company has also set up 7 Wind Electric
Generators of 500 KW each, at Palladam Taluk, in Coimbatore
District, in Tamil Nadu, at a cost of about Rs.20 Crores,
with the financial assistance of Rs. 14.45 Crores from the
IndusInd Bank Ltd and Rs.5.55 Crores from internal
accrual.
The company has also set up 6 Wind Electric
Generators of 500 KW each, at Thenkasi Taluk, in
Thirunelveli District, in Tamil Nadu, at a cost of Rs. 20
Crores, financed from internal accrual.
EXPANSION OF SODIUM
HYDROSULPHITE PLANT CAPACITY
The company has expanded the capacity of the
Hydrosulphite Plant (SHS) from 4600 tonnes (re-endorsed) to
8500 tonnes per annum by adding filter dryer and other
balancing equipments. The company has, out of its own
internal accruals, successfully expanded the existing
capacity. Due to consistent R&D efforts carried out by
the company, the company was able to increase the yield per
batch and consequently was able to achieve higher
production.
ZINC FORMALDEHYDE SULPHOXYLATE
(TANGOLIN)
The company has, by its R&D efforts, successfully
commissioned the Zinc Formaldehyde Sulphoxylate Plant out of
the funds from its internal generation and has been
marketing its new product under the brand name ‘Tangolin’.
The licensed capacity of the Plant is 500 tonnes per
annum.
EXPANSION OF THE SODIUM FORMALDEHYDE SULPHOXYLATE
PLANT (TANGOLITE)
The company has also expanded the production capacity
of the existing Sodium Formaldehyde Sulphoxylate plant from
500 tonnes and has been marketing the same.
TRISALT AND DRUM
PLANT
As a part of backward integration, the company, by
its R&D efforts, has been successful in identifying
three salts, viz., Sodium Formate, Sodium Sulphate and
Sodium Thio Sulphate out of the company’s effluent discharge
thereby reducing the effluent almost to a zero level. These
trisalts are being marketed and has value addition and is
being used in leather, paper and photographic
industries.
DRUM PLANT
The company has set up a Drum Plant to meet its own
packing requirements of Hydrosulphite, Tangolin and
Tangolite, which has, to a certain extent, reduced the cost
of packing.
63.5 MW COAL BASED POWER
PLANT
Background
The company had identified a 63.5 MW new, but unused,
Coal Fired Power Plant in South Africa. This plant was
supplied and erected in South Africa by an Italian company
GIE, presently known as the Ansaldo Group. The plant, which
was nearly fully erected at
Boputhatswana, in South Africa, could not be run, due
to political reasons. It was decided by the Government of
South Africa to sell the Power Plant.
TCP had deputed a team of its Power Plant specialists
to inspect and examine the condition of the Power Plant. It
was found that M/s Merz and Mclellan in South Africa and M/s
Dryden Combustion Company, South Africa, had preserved the
Power Plant in an excellent condition, as per the
preservation procedure of the Original Equipment
Manufacturers.
Based on the technical information and Plant
condition, TCP Ltd purchased the Power Plant through
Redington India Private Limited, Singapore, under, as is
where is condition, and was brought to India for up
gradation and reerection and commission at Gummidipoondi, in
Thiruvallur District, Tamil Nadu.
Erection and
commissioning
The plant was erected and successfully commissioned
during September 1999. It has been operating at its targeted
capacity without any hindrance. The company has entered into
a Power Purchase Agreement with the TNEB for the supply of
the power generated at its Plant to the TNEB Grid. The Power
Plant has been successfully generating and supplying the
Power to the TNEB Grid.
Project Cost and Means of
Financing
The project cost of the plant for re-erection, after
dismantling the same from South Africa, was estimated and
appraised at Rs.109.84 Crores by Industrial Credit and
Investment Corporation of India Ltd. (ICICI) a leading
Financial Institution. ICICI along with Indian Overseas Bank
(IOB), C& IC Branch, sanctioned a Term Loan assistance
of Rs.71.40 Crores and the balance of Rs.38.44 Crores was
brought in by the Promoters by way of interest free
unsecured loan and by issue of 33,54, 606 Equity Shares of
Rs.10/- each, by way of Rights offer, in the ratio of 2
Equity Shares for every 1 Equity share, at par, at Rs.10/-
each, to the existing shareholders, on the record date of
7th July 2000.
FOOD
DIVISION
The company, as part of further diversification, has
identified wheat products manufacturing unit. The unit has
been purchased and is given on lease.
6 MW BIOMASS BASED POWER
PROJECT
The company is presently implementing a 6 MW Biomass
based Power Plant at a cost of around Rs.22 Crores duly
financed partly by the Bankers and partly out of internal
generation.
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