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Private Sector | Maharashtra - India | PID: 182135
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Home-grown paints company, Shalimar Paints is planning to raise Rs. 200 crore via rights issue. A part of the proceeds will go as capex to reestablish its Nashik unit, while a major portion will be used as working capital
Incidentally, its board has approved a rights issue of not exceeding Rs. 240 crore
According to Ashok Kumar Gupta, Vice Chairman, Shalimar Paints, an estimated Rs. 40-45 crore will be spent on the Nashik factory which is expected to have an annual capacity of 25,000 kilolitres and is likely to be fully operational by April-May 2019. The factory was partially gutted in 2016
He also said that the revival of operations at the unit is central to the company’s turnaround scheme that includes shoring up capacity, focus on the West India market, and also a gain market share. The company reported a turnover of Rs. 123 crore and a net loss of Rs. 25 crore for the first six months of this fiscal (April to September)
“Proceeds of the rights issue is expected by December.By April-May next year, the Nashik unit should be fully operational. This should give our operations a leg-up,” Gupta told
With higher capacity and better utilisation, we should report cash profits by FY20,” he added
Shalimar Paints, which moved its registered office from Kolkata to Gurgaon a few years ago, currently has two operational units— in Chennai (Tamil Nadu) and Noida (Uttar Pradesh)— with a combined capacity of 50,000 KL per annum (25,000 KL each). Operations at Howrah (West Bengal) remain suspended since a fire broke out in 2014. The company is awaiting clearances from the West Bengal government before construction work resumes. “Capacity and other details regarding the unit are being worked out,” said Gupta
With input cost pressure mounting due to because of fluctuating crude prices, Shalimar Paints is looking to shore up the portfolio of water-based paints
| Updated on: 30 - Oct - 2018
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