Financial Daily from THE HINDU group of publications
Friday, Jan 06, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Markets - Stock Markets


Thirumalai Chemicals to benefit from rival's woes

M Ramesh

Chennai , Jan. 5

THE Thirumalai Chemicals Ltd (TCL) stock could benefit from the problems faced by its rival, IG Petrochemicals Ltd.

Both companies make phthalic anhydride. The Appellate Committee Cell of Ministry of Commerce & Industry has banned IG Petrochemicals from selling any quantity in the Indian market. Since IG Petro has been selling between 2,500 tonnes to 3,000 tonnes of the chemical in India, the space it vacates will mainly benefit TCL. This could mean an additional turnover of Rs 40 crore in the fourth quarter.

The TCL stock today closed at Rs 147.65 on the BSE. Close to 4,000 shares were traded.

In November, the Development Commissioner of SEEPZ-SEZ imposed a penalty of Rs 236 crore on IG Petro, a EOU, for excise evasion. The order said IG Petro had "submitted wrong information of DTA sales amounts." The company "failed to furnish information even when repeatedly asked for," it said.

The DC estimated that the excessive sale already affected "in violation of the provisions of the Foreign Trade policy" in the Indian market was worth Rs 78.35 crore. Further, it said IG Petro "evaded duty of Rs 31.64 crore" and imposed a penalty of five times that amount, or Rs 158.20 crore. The value of the excessive sales and the penalty add upto Rs 236 crore.

For the quarter ended June, IG Petro achieved a turnover of Rs 86 crore and made a net loss of Rs 21 crore. In the following quarter, its turnover was Rs 74 crore on which the net profit was Rs 2 crore.

The company's shares closed at Rs 15 on the BSE today and 20,320 shares exchanged hands.

The company challenged the order. Dismissing the motion, the Bombay High Court asked the matter to be decided by the Appellate Cell of the Ministry of Commerce.

The Cell recently passed an interim order staying the penalty levied by the DC until final disposal of the appeal, but "no clearance to the domestic tariff area whatsoever shall be allowed."

IG Petro, however, could continue exports.

More Stories on : Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
IDBI Capital awaiting RBI nod for foray into commodities


Outlook for India remains positive: Fidelity
Equity-linked savings scheme launched

Market bullish on Concor
Tulip IT Services debut marred by trade error
Gujarat Apollo on road to steady growth
Volatile movement
Andhra Bank gains ahead of public issue
Thirumalai Chemicals to benefit from rival's woes
M&M Financial to sell shares to FII
Cautious sentiment rules market
Global Trade Finance hopes to become a bank; IPO in the offing
Gitanjali Gems fixes IPO price band at Rs 210-250
Zenith to raise Rs 125 cr
Andhra Bank public issue to open Jan 16


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line