Chiripal sets Rs 500 crore sales target

The Ahmedabad-based Chiripal Group has embarked on a major expansion exercise of all its four group companies and is also aiming to increase the turnover from Rs 295 crore to Rs 500 crore by the end of the current fiscal. It is also looking at diversification and is planning a foray into denim manufacturing.

Company officials said that expansion of all four group companies - Chiripal Petrochemicals Ltd, Shanti Processors Ltd, Vishal Fabrics Pvt Ltd and Nandan Exim Ltd - is currently on.

"The capacity of all the four group companies is being upgraded. While part of the Nandan Exim expansion will be through an IPO, the expansion of the remaining companies will be though internal accruals and bank loans. We expect the turnover to touch Rs 500 crore by this year's end," Ved Prakash Chiripal, chairman, Chiripal group, said on Thursday.

"A major part of the expansion will happen in Chiripal Petrochemicals Ltd (CPL), which reported a turnover of Rs 74 crore in the 2004-05 fiscal," said Yogesh Thaker, director, Chiripal group.

Deepak Chiripal, another director of Chiripal group, said that the capacity of CPL will be doubled from 50 tonne per day to 100 tonne per day.

The group is also considering merging Shanti Processors Ltd with Chiripal Petrochemicals Ltd in the near future.

The public issue of Nandan Exim's 60 lakh equity shares of Rs 10 each for a cash premium of Rs 10, aggregating Rs 12 crore, will open on May 12 and close on May 20.

After the public issue, 56 per cent of Nandan Exim Ltd's equity will remain with the promoters, while the remaining 44 per cent will be with the public. This will also mark the group's foray into denim manufacturing.

Thaker also informed that Vishal Fabrics reported a turnover of Rs 60 crore for the year, Nandan Exim reported a turnover of Rs 45 crore for the nine months ended December 31, 2004 and Shanti Processors Ltd reported a turnover of Rs 105 crore for the year. Shanti Exports, a division of Shanti Processors, also reported a turnover of Rs 11 crore.