| Mangalam Timber Products (MTP), is set to come out of BIFR after seven years.
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| The company was the leading medium density fibre (MDF) board manufacturer in the country and belonged to the Rs 5,500 crore BK Birla group.
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| Mangalam Timber management will apply to the Board for Industrial and Financial Reconstruction (BIFR) for de-registration as a sick company in September 2005.
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| The managing director of MTP, G S Gupta, told reporters here that the net worth of the company has become positive on March 31, 2005, and it was no longer a sick company.
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| MTP was referred to BIFR in 1998.
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| Gupta said the accumulated losses of the company had been brought down from Rs 19 crore to Rs 6.44 crore during 2004-05 after the adjustment of deferred tax assets.
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| MTP recorded a 400 per cent jump in net profit from Rs 48.37 lakh in 2003-04 to Rs 2.89 crore in 2004-05.
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| It achieved turnover of Rs 61.72 crore in 2004-05 from Rs 43.66 crore in 2003-04. The company was hoping to record a 20 per cent growth in turnover in the current fiscal.
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| According to Gupta, the company was now giving a special emphasis on plantation activities to ensure steady supply of raw materials in the future.
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| “We have earlier initiated farm forestry scheme in Orissa and Chhatisgarh in 2001. This year we have an ambitious plantation target of 20,000 acres, a majority of this will be in Andhra Pradesh,” he said.
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| One of the directors of Mangalam Timber, S K Parik, said the first batch of plantation would mature by 2006 and would be ready for use.
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| “We hope that by end of 2008-09 entire raw material requirement can be sourced from our indigenous plantations. This will give us a tremendous advantage in the future,” he said.
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| Parik said the group was hopeful that MTP would be operating at 100 per cent capacity from the present level of 80 per cent by the end of 2005-06. |
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