KANCHI KARPOORAM Share price

Kanchi Karpooram Ltd was incorporated on 31st January1992 as Public Limited company under the Companies Act1956 and received the certificate of commencement ofbusiness on 27th February 1992.Kanchi Karpooram Ltd. was originally conceived by SureshShah one of the largest consumers in the country and aleading tableteer of AMBIKA brand. He was encouraged inthis vision by some of the directors of M/s. TwincityOrganics Pvt. Ltd. which was one of the two majormanufacturers of Camphor in the country at that time ThusKanchi Karpooram Ltd. was incorporated with Suresh Shahhis associates and some of the directors of M/s. TwincityOrganics Pvt. Ltd. and their associates being the initialsubscribers to the Memorandum and Articles of Associationof the company. However with effect from 31/3/93 thedirectors of Twincity Organics Pvt. Ltd. disassociatedthemselves from the project because of non-receipt of termfinance assistance from IDBI and pre-occupation with theirown businesses. Thereupon Shri. Suresh Shah who is themain customer of the products which are proposed to bemanufactured by the company decided to go ahead with theproject by flushing-in the required finance himself and bytaking into confidence his other businessassociates/friends who are convinced about the company''spotential.Camphor is a white flaky/crystalline powder having highsublimation properties with a melting point ofapproximately 170 degree Celsius. It is extensively usedfor pooja purposes and also finds usage in Pharmaceuticalspesticides as a plasticizer for cellulose nitrates and incosmetics. It is also used in pain relieving balmsinhalers and Ayurvedic medicines and anti- moth inAmerican Western European countries. Camphor powder isconverted into camphor tablets / slabs / lumps by more than400 SSI & cottage units in unorganised sector in SouthIndia. Market survey reveals that camphor powder is usuallyin short supply especially during season period. i.e. fromAugust to January. Camphor is used mainly for Aartipurposes by Hindus. The Hindu festivals generally fallduring the period August to January i.e. from GaneshChaturthi to Sabarimala season. There exist a heavy demandto the tune of 2-3 times compared to its normal consumptionduring the period from February to July.As forecasted in the financial institutions survey theanticipated demand in 1997-98 for camphor is 9600 M.T. Theindigenous consumption of camphor has risen from 2400 MT.in 1986-87 to 3960 M.T. in 1991-92 at a growth rate of 14%.Region-wise Southern Region tops the list at a consumptionof 65% while Northern and Western region consumes 20% & 10%respectively.Karpooram (Camphor) Sodium Acetate and Dipentene thesefind wide industrial uses in Pharmaceutical Dyes DyesIntermediates Food Perfurmary and Household industries.Mainly Karpooram is supplied to tableteers which in turnhas the end use as incense in the performance of pooja andreligious rituals. Usage of Karpooram is the largest insouth accounting for 65% of the demand in the country.With no units in operation in Tamilnadu thedealers/manufacturers found difficulty in organisingsupplies from north and consciously promoted this ventureto serve the interest of the units in this part of thecountry.Before going in for the project of Karpooram per se it wasfound necessary for the commercial and other reasons tobifurcate the project into two phases. The first phasewould be in effect a backward integration for themanufacture of turpentine which would then be processedcaptively into camphor.Kanchi Karpooram Ltd. is currently in the line ofmanufacturing organic chemicals that are precursors in theprocess for manufacture of Karpooram. The company has setup facilities for manufacture of Turpentine Oil & Gum rosinat Enadur Village Parandur Road Kanchipuram Tk. TamilNadu and commenced production in December 1994 Theproject was appraised by SIPCOT and was assisted with aterm loan of Rs. 110.43 lakhs The Company has alsodeveloped technology for manufacture of value-added resinsfrom Gum rosin regular production of which commenced inJanuary 1995 The Company''s products find application inindustries like Rubber Paints Paper Adhesives etc. Henceits products'' demand will keep on increasing with growth ofall above consuming sectors The company has so far notfaced any labour or closure problem.