GANESH BENZOPLAST Share price

Ganesh Benzoplast Limited (GBL) the flagship Company of theGANESH Group was incorporated on May 151986 with the Registrarof Companies Maharashtra at Bombay and obtained its Certificateof Commencement of Business on May 21 1986. The Company inengaged in the manufacture of industrial chemicals viz. BenzoatePlasticizers (sold under the trade name "Benzoplast") BenzoicAcid and Sodium Benzoate.Ganesh Benzoplast Ltd. has set up a plant at D-5/2 MIDCTarapur Maharashtra for manufacture of Benzoate PlasticizersBenzoic acid and Sodium Benzoate. The first phase of the projectcomprising of facilities for manufacture of 3600 tonnes perannum of Benzoate Plasticizers wan set up in 1988 at an outlayof Rs. 295 lacs. This was financed by equity share capital ofRs. 137 lacs term loans of Rs. 138 lacs from SICOM & MSFC andState subsidy of Rs. 20 lacs. The project went on stream in July1988 and has been operating satisfactorily. The second phase ofthe project for manufacture of 1800 tonnes per annum of BenzoicAcid and 1800 tonnes per annum of Sodium Benzoate was taken upduring 1990 at a project cost of Rs. 950 lacs. This wasfinanced by a term loan of Rs. 500 lacs from All India FinancialInstitutions with ICICI in the lead and issue of partlyconvertible debentures This project commenced its commercialproduction in August 1992. this manufacturing facility islocated at D- 2112/2 MIDC Tarapur Maharashtra.Spurred by an increasing demand for benzoate plasticizers theCompany took up an expansion in the capacity of benzoateplasticizers from 3600 tpa to 7200 tpa in the year 1994. Theexpansion was initiated in the same site where its facilitiesfor manufacture of sodium benzoate and benzoic acid are located.The expansion involved an outlay of Rs. 932 lacs which wasfinanced by a rights-cum-public issue of fully convertibledebentures in January 1994. The expansion programme has beencommissioned in January ''94 and commercial production hasalready commenced.As a major diversification from its business of manufacture ofplasticizers sodium benzoate and benzoic acid the Companyinitiated a project for setting up Liquid Chemical storagefacilities of 30000 kilo liters at Jawaharlal Nehru Port NhavaSheva Bombay for class B Chemicals involving a capital outlayof Rs. 894 lacs.The chemical industry in and around Bombay are the majorconsumers of class ''B'' Chemicals. Large quantity of thesechemicals are imported by these units through Bombay Port andJawaharlal Nehru Port at Nhava Sheva near Bombay. Consideringthe special storage requirements of these chemicals and thelimited facilities presently available at Bombay Port theCompany decided to set up chemical storage facilities at JNPNhava Sheva an all weather major port located close to BombayThe project work for chemical storage terminal commenced onschedule. However owing to tremendous emerging potentialespecially with liberalized import policy for liquidpetrochemicals kerosene etc the Company decided to increasethe chemical storage facility from 30000 KL to 70000 KL. Theexpansion was envisaged at an additional cost of Rs. 1385 lacswhich has been financed by placement of shares with foreignInstitutional Investors to the extent of Rs.453.15 lakhs andbalance by placement of shares with Corporate bodies onpreferential basis.Status of implementation of Chemical Storage tanksThe commercial operations of the tat Phase of 30000 KL has alreadystarted in October 1994 and the 2nd Phase of 40000 KL in expectedto commence operations by April 1995.For financing the second phase the Company has placed 604200Equity shares of Rs.10 each for cash at a premium of Rs.65 pershare aggregating Rs.453.15 lacs FIIs the proceeds of whichwere received in July 1994. This placement was done pursuant tothe resolution passed under Section 81(1A) by shareholders ofthe Company at the EGM held on 24031994.For the balance the Company has placed 840000 Equity Sharesof Rs.10 each for cash at a premium of Rs.115 per shareaggregating Rs.1050 Inca with Corporate Bodies the proceeds ofwhich were received in October 1994. This placement was donepursuant to the resolution passed under Section 81(1 A) byshareholders of the Company at the EGM held on 01.08.1994. TheCorporate Bodies with whom the placement has been done are in noway related to the promoters. The above placement aggregate toRs.1503.15 lacs of which Rs.1365 lacs is towards financing thesecond phase and the balance is being deployed towardslong-term working capital of the Company