Siro Plast

Price on 12/03/98: Rs 6.85

Mahindra Holdings and Finance is proposing to acquire 21.03 per cent of SICOMs holding in Siro Plast. This will result in the holding of the Mahindras going up to 41.10. Siro Plast which manufactures composites which are widely used in the automobile industry has a very low penetration in the country. The major revenue comes from engine hoods, headlamp housings and transmission covers. The electrical sector contributes 30 per cent to its turnover.

It has a technical collaboration with Menzolit of Germany. In the last financial year, the company posted an impressive performance with sales increasing to Rs 16.77 crore and a net profit of Rs 2.12 crore. It also wiped out the entire accumulated losses in the financial year 1996-97. The performance of the company in the first half of the current financial year has not been good with sales declining by 8.5 per cent to Rs 5.95 crore and the net profit declining by 25 per cent to Rs 0.77 crore.