Coates In Equity Talks Over Cray Valley Project
Coates of India Ltd has decided to participate in the equity of Cray Valley Resins India Ltd, the new joint venture between the company and the French firm Cray Valley. "The board has agreed in principle to participate in the equity of the new venture, the terms of which are under negotiation.
The project will start only after all requisite approvals, including those from the Government of India, are received," said Jagdish Narain Sapru, chairman, Coates of India, while addressing the 49th annual general meeting of the company here yesterday.
Coates of India floated the joint venture with Cray Valley, the subsidiary of French-based Total S A, to manufacture synthetic resins in the country.
The company is also planning to approach the Calcutta High Court for sanctioning a scheme of reconstruction to effect the transfer of the can-coating business as a going concern.
This has come in the wake of its decision to disinvest its interest in the can-coating business and transfer the business to a joint venture with Valspar Corporation of US. "The venture is expected to commence operation in the last quarter of 1997," Sapru added.
During the year ended December 31, 1996 Coates of India registered a modest 6 per cent growth in turnover to Rs 133.3 crore.
The profit before tax at Rs 11.1 crore was lower by about 15 per cent.