Tamilnadu Petro's increased turnover

By Our Corporate Reporter

CHENNAI, MAY 26. Tamilnadu Petroproducts (TPL) has reported a big rise in turnover to Rs. 726.52 crores in the year ended March 31, 2001 from Rs. 574.23 crores in the previous fiscal. The caustic- chlor unit of SPIC, acquired by TPL, contributed Rs. 46.8 crores to the turnover.

Production of LAB (linear alkyl benzene) rose to 99,631 tonnes from 87,461 tonnes while there was a sharp rise in the output of epichlorohydrin (ECH) to 3,620 tonnes from 951 tonnes. The company achieved a significant growth in sales of ECH in the domestic and export markets.

The gross profit, before depreciation and interest charges, however, increased only modestly to Rs. 151.33 crores from Rs. 142.01 crores. Interest charges were higher at Rs. 34.53 crores against Rs. 23.05 crores and depreciation at Rs. 42.89 crores (Rs. 35.48 crores). The provision for taxation is Rs. 22.50 crores (Rs. 32.50 crores). The net profit was thus marginally higher at Rs. 51.41 crores (Rs. 50.98 crores) However there was an extraordinary income of Rs. 63.02 crores received during the year from Ciba India Private Limited (CIPL) as compensation for premature closure of the existing ECH supply contract.

Mr. D. Arunachalam, Managing Director of TPL told this correspondent that there was a significant development in Petro Araldite Private Limited (PAPL), a joint venture between TPL and Ciba India Private Limited (CIPL) for manufacture of epoxy resins. Following Ciba's global disinvestment in polymer business, CPIL sold its stake in PAPL to Vantico, a venture fund and TPL received the compensation amount mentioned above. The equity dividend has been maintained at 25 per cent.

The acquisition of the chlor-alkali unit had improved the continuous availability of chlorine which resulted in the higher production of ECH. The company is installing an improved reactor system in the EPH plant which will reduce the cost of production and improve capacity utilisation, Mr. Arunachalam said.

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