Taneja Plans Rs 5cr Preference Shares

The loss-making Taneja Aero-space and Aviation Ltd (TAAL), Indias only private aircraft manufacturing company, plans to raise funds through private placement of redeemable cumulative preference shares up to Rs 5 crore to augment its resources.

TAAL also plans to use its improved facility to produce aircraft parts for other categories of multi-role light transport aircraft (MRLT). The company has been selected as the production partner for building the prototype of the MRLT called Saras in association with the National Aerospace Laboratories.

An MoU for the same has already been signed between the two. TAAL, which reported a turnover of Rs 4.37 crore during the year ended March 1997 against Rs 7.22 crore in the previous year, proposes to raise up to Rs 5 crore through redeemable cumulative preference shares of Rs 100 each shortly.

 

The company, because of the low turnover this year, has suffered a net loss of Rs 1.4 crore during 1996-97 as compared with Rs 97 lakh in the previous year.

The companys unsatisfactory performance was attributed to its failure to market Cessna Citation Jet aircraft for which it had taken dealership in India from the Italian aircraft manufacturing company in 1995.

The company also blamed the slowdown in the industrial sector for the same. However, it added that it is hopeful of selling a few Cessna aircraft this year.

Taneja Aerospace expects the new facilities to improve the companys capability, apart from reduction in manufacturing cost.

These facilities have become fully operational and TAAL can now produce aircraft independently, said Salil Taneja, managing director, TAAL. He said this, in turn, would help the company to achieve a significant breakthrough in productivity and sales in the current year.

TAAL is increasing its defence-related manufacturing and support activities to meet the needs of various defence agencies.

The company has been involved in the production of the 'remote pilotless vehicle (RPV) for the Aeronautical Development Establishment (ADE).

While stating that it was able to meet the time schedule for supply of components, Taneja added that ADE has placed additional orders for the RPV with the company.

Taneja has also approached some banks for getting reliefs and concessions to restructure the companys finance. TAAL has also been successful in getting customers for its Net Air aircraft time sharing scheme.