Swc Creditors Oppose Move To Sell Subsidiaries

Chambal Fertilisers and Chemicals (CFCL), one of the largest private sector urea producers of the K K Birla Group, registered an increase in profit in 1998-99 despite a drop in sales realisation.

In the audited results for 1998-99, the company reported an over 12 per cent drop in turnover compared with a near 21 per cent rise in the previous year.

According to H C Grover, managing director, CFCL, the company's income from the sale of traded products was only Rs 26.93 crore during the year against Rs 200.78 crore in 1997-98.

During the year, through its restructuring programmes and cost management, CFCL was able to decrease its expenditure by nearly 21 per cent. The slide in total expenditure and a reduced interest burden helped the company record a near 10 per cent increase in its pre-tax profit. But, a near 14 per cent increase in tax provision pulled down the company's growth in bottomline to 9 per cent compared with the previous year's 12 per cent surge.

 

CFCL was promoted by the Goa-based Zuari Industries (formerly Zuari Agro Chemicals) and was originally incorporated on May 7, 1985, under the name of Aravali Fertilisers Ltd. The name was changed to the present one in the 1988-89 financial year.

The company started manufacturing urea on January 1, 1992, with its 2,250 tonne per gas-based plant at Gadepan (Rajasthan).

The company is doubling capacity at its fertiliser plant at an estimated project cost of Rs 1,256 crore.

The overall progress of t