The Hindu : Business : Mangalam Timber set to end BIFR stint

Online edition of India's National Newspaper
Thursday, Jun 30, 2005

Business

Business

Mangalam Timber set to end BIFR stint

Special Correspondent

Steps up farm forestry programme in three States

KOLKATA: Mangalam Timber Products Ltd (MTPL), a B. K. Birla group company, is set to end its nearly seven-year-long stint at the Board for Industrial and Financial Reconstruction (BIFR) after effecting a turnaround, which it now plans to consolidate.

The Managing Director, G. S. Gupta, said at a press conference that although the company's net profit increased from Rs. 48 lakh in 2003-04 to Rs. 2.89 crore in 2004-05, shareholders might have to wait for some time before dividends could be declared.

The Orissa-based company, commissioned in 1987 to make medium density fibreboard (MDF), was in the red since inception and had faced closure. "We will soon approach the BIFR for de-registration since MTPL became networth positive in March 2005," he said.

Mr. Gupta said the emphasis on plantation activities was giving the company an edge, enabling cost saving.

It undertook plantation of about 12,000 acres under farm forestry schemes in Orissa and Chhattisgarh and has recently launched a similar scheme in Andhra Pradesh.

The company had also gained self-sufficiency in formaldehyde, another raw material which it was also selling outside.

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