Prescription: Stay Away

Datt Mediproducts (DML) has set up a 100 per cent export oriented unit in Gurgaon district in Haryana to manufacture gauze swabs (installed capacity 173 million), cotton crepe elastic bandage (3.5 million) and lengthwise elastic cloth (0.72 million).

DML is a part of the Calcutta-based Brahm Datt group. This venture is an unrelated diversification for the group, as its major areas of interest are construction, real estate development, hotel, transportation of LPG and financing.

DML has a technical, financial and marketing collaboration with White Cross Inc., Korea and Sheng Jih Textile and Surgical Dressing, Taiwan.

The project cost, as appraised by Exim Bank, is Rs 26.43 crore. For this project, the promoters will bring in Rs 6.95 crore of equity. Exim Bank has extended a foreign currency loan of Rs 10 crore. The foreign collaborators are contributing equity of Rs 0.86 crore and the balance will be met through the public issue. The promoters