Thirumalai Chemicals Share price

Thirumalai Chemicals Limited was incorporated in 1972 as a public limited company. It was established for the manufacturer of PAN with an initial installed capacity of 7500 mts per annum based on the technology supplied by Ch.F.Von Heyden and Davy Power Gas Germany. The plant commenced commercial production in 1976.Between 1983-86 the company expanded its PAN capacity by 15000 mts per annum based technology supplied by PSA-LZV Von Heyden and Davy McKee Germany.During this time the company installed a plant to recover Maleic Anhydride from effluent gases based on technology supplied by Alusuisee Italia Spa Italy. The Company also took up an energy revamp project of its old plant using its own technology and engineering expertise. The Company has attempted to continuously modernize and retrofit its plants. After debottle-necking TCL has increased the PAN capacity to 25000 tpa.The Company installed a plant to manufacture 10000 tpa of maleic anhydride in 1990 based on the technology of M/s. Alusuisse Spa Italy. In a further expansion ofactivities the Company installed a plant to manufacture2000 tpa of food acidulants based on an in-house R & Dprocess in 1991. In May 1994 the Company receivedISO-9002 accreditation for their quality system.The Company is an experienced manufacturer of PAN having been in the business over a period of two decades. It has also established skills in marketing and distributing of PAN. The Company''s emphasis on product quality has been recognised internationally - a prime indicator of this being its export growth from Rs.162 lacs in 1986 to Rs.2416.9 lacs in 1993-94 showing a compounded rate of growth exceeding 40%.The Company has shown consistent profitability. It has declared dividends every year from 1979 onward except for 1992-93; in 1992-93 the Company made losses due to a fall in demand for PAN though a recovery in 1993-94 enabled it to post after-tax profits and declare a 20% dividend. No merges reorganisations or amalgamations have taken place in the past.The Company is currently undertaking an expansion of its food acidulants capacity by 3200 tpa (primarily for manufacture of malic acid). The total project cost as appraised by ICICI is Rs. 12 crores. This project will be financed through internal accruals of Rs.3 crores and a term loan from ICICI of Rs.9 crores.