The Hindu Business Line : National Plywood: Revival hopes

The market buzz is that National Plywood Industries, a closed and sick unit is poised for a revival of operations. The company has called an annual general meeting of the shareholders on September 27. This follows a July 28 board meeting of the company.

The stock, which is listed on the BSE, CSE and Guwahati Stock Exchange, remains suspended since October 1, 2002 leaving retail investors in a jam.

Controlled by Periwals of Kolkata, the company has three manufacturing units - in Assam, West Bengal and Karnataka.

According to Dalal Street sources, the promoters have gone in for a one-time-settlement with the bank/financial institution (State Bank of Mysore and IDBI) for the dues estimated to be around Rs 12 crore including interest and the principal. The promoters are also understood to be bringing in strategic partners. The total restructuring, according to market grapevine, would see an infusion of around Rs 30 crore from the existing promoters and financiers/strategic investors.

A market source close to the development indicated to Business Line that by end of September, the restructuring exercise would be complete. The one-time-settlement process has already begun and the first of the two instalments has been paid up.

According to the last published balance sheet for 1999-2000, the company had a sales over Rs 99.14 crore and reported a net loss of Rs 12.56 crore against a profit of Rs 2.91 crore in the previous fiscal.

Jayanta Mallick

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