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Synthetics & Chemicals Ltd.

BSE: 506660 Sector: Others
BSE 05:30 | 01 Jan Synthetics & Chemicals Ltd
NSE 05:30 | 01 Jan Synthetics & Chemicals Ltd

Synthetics & Chemicals Ltd. (SYNTHCHEM) - Company History

Incorporated on 21 Jan.'60, Synthetics & Chemicals (SACL) was promoted by the late Shri Tulsidas Kilachand in technical and financial collaboration with Firestone Tire & Rubber, US. The company is managed by executive chairman Suresh T Kilachand and managing director U S Kilachand. The company came out with a rights issue at a premium of Rs 25 aggregating Rs 48.93 cr in 1993, to expand its latex and synthetic rubber (SBR) capacity. Total cost of the project was estimated to be Rs 79 cr. The company manufactures all types of synthetic rubber, synthetic resins, lattices and formulations thereof. It also manufactures alcohol at its Bareilly plant. The company has entered into a collaboration with IAB, Germany, for technical know-how and supervision in designing, erection and commissioning of production plants. Company has also entered into a technical tie-up with Reichold Chemicals to manufacture 10,000 tpa of carboxylated SBR latex. The expansion of capacity from 40,000 tpa to 70,000 tpa, but company has abandon the SBR expansion project due to non achievement of production level more than 30,000 MTs and production for the year 1998-99 is hardly 25% of the existing capacity 41000 MTPA. Looking the past performance and the future projection, the demand for SBR in India, the liberalised imports being allowed, dependency on the imported raw materials, weakening of rupee, the project has become uneconomic & non-viable. Therefore, the company decided to abandon the project & make reference to the Board of Industrial and Fiancial Reconstruction (BIFR) of the sick industrial company.