MURUDESHWAR CERAMICS Share price

Murudeshwar Ceramics Limited (MCL) was promoted in 1983 by R N Shetty and Associates alongwith KSIIDC for the manufacture of 12500 tpa of glazed ceramic tiles using single firing process at Krishnapur village near Hubli Dharwad District in Karnataka. The Company had sourced the technical know - how for the project from Sacmi Imola of Italy (SACMI) who had also supplied the plant and machinery for the project.The Company entered the capital market in January 1988 with a Public Issue of Rs.165 lacs to part finance this project costing Rs. 1345 lacs. The Company started commercial production on 1st May 1988 without any time or cost overrun. In view of the satisfactory performance the company expanded the production capacity to 25000 tpa by installation of balancing equipment during 1989-90.In 1992-93 the Company undertook an expansion cum diversification project to increase its capacity from 25000 tpa to 40000 tpa by adding 15000 tpa capacity for the production of vitrified tiles and also by setting up facilities for the processing of 72000 sq.m pa of granite slabs at Chalamatti village Dharwad District in Karnataka. The total cost of the project of Rs.41 85 lacs was financed by a rights issue of equity capital of Rs.1545 lacs (at a premium of Rs.50/ per share) rights issue of partly convertible debentures of Rs.1620 lacs Rupee term loan of Rs.1000 lacs from ICICI and state subsidy of Rs.20 lacs. The commercial production of vitrified tiles was scheduled to commence from March 1993 and that of granite slabs from September 1993. There was a fire accident during installation in the control panel of the granite slabs unit thus delaying the implementation of the granite processing project as the control panel had to be imported again from the supplier. The granite slabs project commenced commercial production in March 1995. In case of Vitrified tiles project there was a delay in the supply of polishing line resulting in delayed implementation of the project by 11 months. The resulting cost overrun of 375 lacs in these projects was financed out of internal accruals.PRESENT BUSINESS OF THE COMPANYPresently the Company is engaged in the manufacture and marketing of ceramic tiles under the brand name "Naveen" and vitrified tiles under the brand name "Diamontile" and manufacture of granite slabs. The details of installed capacity production sales for the last 5 years are as given below: (in tonnes per annum) 1992 1993 1994 1995 1995 Ceramic & Vitrified Tiles Granite slabsInstalled Capacity (MT) 25000 40000 40000 40000 72000*Production (MT) 26812 28960 38107 40240 6370**Sales - Qty (MT) 26996 28907 35224 37323 2544Net Sales - Value 1939 2074 2599 3579 22(Rs. in lacs)Average realisation 7168 7175 7379 9589 865(Rs.per tonne)* sq.m pa** One month production the plant started commercial production in March 1995.