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Next From ITC: Soaps & Shampoos
- by The Economic Times

After a brief lull, competition is all set to hot up in the personal care segment with ITC set to officially launch its soaps and shampoos under a brand name, Superia, early next month. The products are being priced competitively to take on competition from HLL and P&G. Trade sources said that HLL had been tracking the market closely to meet ITC’s entry-market tactics.... Read Full Story

Greenply To Reposition As Interior Infrastructure Company

GIL is set for an image makeover. After finalising its plan of adding particle board to its product portfolio, the company has drawn up a strategy to reposition itself as an `Interior Infrastructure Company' rather than leaning on its image as a mere plywood producer. The company plans to concentrate on value-added products to enter the mid-market segment. For this, a new manufacturing unit will be set up in Uttaranchal. The mid-market segment in the plywood industry is growing at the fastest rate and accounts for 40-45 per cent of the total plywood business in the country. The new unit will be Greenply’s fourth manufacturing facility, the existing units are located in Bengal, Nagaland and Rajasthan (for particle board lamination). The manufacturing unit in Uttaranchal will be set up at an estimated cost of Rs 80 crore, which will be funded by a debt and equity mix. The plywood business of the company currently comprises 35 to 40 per cent of its Rs 300-crore turnover, while laminates constitute another 45 per cent. The company is also expanding the capacity of its factory at Joka in Calcutta by 20 per cent at a cost of Rs 5 crore and that of the Nagaland unit at a cost of Rs 4 crore. Last fiscal, the company had increased the capacity of its Alwar unit in Rajasthan, which makes laminated particle boards, by 50 per cent at an investment of Rs 12 crore.

Patel Engineering : Simba Becoming Lion King

Patel Engineering has reported a 123.5 percent rise in net profit at Rs 25.32 crore for the third quarter ended December 31, 2005 as compared to Rs 11.32 crore in the corresponding quarter previous year. Total income grew by 16.4 per cent to Rs 237.32 crore as against Rs 203.87 crore during the same quarter previous year. The board of directors of the company at its meeting held today have declared second interim dividend of 50 per cent (Re 0.50 paise per share) on its equity shares. Meanwhile, the company posted a 95.42 percent rise in net profit at Rs 49.66 crore for the nine month period ended December 31, 2005 compared to Rs 25.41 crore in the corresponding period previous year. The Earnings Per Share for the nine months period ended December 2005 stood at 9.93 compared to Rs 5.08 corresponding pervious year.

The Rs 800-crore Patel Engineering Ltd (PEL), a civil engineering company, is diversifying into a number of related areas. According to a reliable source, around Rs 500 crore will be raised to finance the plan, repay certain debts, and boost capital expenditure and working capital. An enabling resolution for fund-raising will be placed before the shareholders on January 30. The company has property in Mumbai, which is worth Rs 200 crore at current market prices. The property will be developed on a commercial basis to kick-start the company's real estate venture. Plans are likely to be given shape in 2006-07. PEL is also looking at hydro-power generation through installation of a project in the North-East. The company is working on acquiring an overseas engineering company with specialisation in civil construction work. PEL had earlier acquired two US based engineering companies - ASI RCC Inc and Westcon Microtunneling Inc - for their specific engineering expertise in roller compacted concrete (used in construction of dams) and micro-tunnelling technology. The total investment in acquiring the two overseas companies was around $ 7.5 million.