Financial Daily from THE HINDU group of publications
Thursday, Oct 16, 2003

Port Info

Group Sites

Corporate - Performance

Everest on growth path; plans fresh investments

R.Y. Narayanan

Coimbatore , Oct. 15

THE acquisition of the stake of Etex Group, Belgium, in Everest Industries Ltd (EIL) by ACC seems to have had a profound influence on the fortunes of the company, which has turned the corner and is now making fresh investments to boost production.

It is also looking at opportunities for making investments in green field projects so as to enlarge its market share and market studies are on for identifying potential areas for putting up factories. Speaking to Business Line in Coimbatore, Mr Manish Sanghi, Executive Director (Marketing), EIL, New Delhi, said ACC, which earlier had a 26-per cent stake in the company, acquired 50 per cent stake of its joint venture partner Etex Group of Belgium early last year .

Asked about the impact of the change in management control of EIL on its fortunes, he said the big difference was `flexibility'.

The company took its own marketing decisions now and has become `far more assertive and quick in the market place'. Earlier it was a `little confused' in the market place and did not know where to go. It was now focussed on what it wanted to achieve and it wanted growth. Of course, the brand value of ACC helped immensely in creating trust.

Replying to a question as to whether all this has reflected in the financial performance of the company, the EIL Executive Director said the company made losses at operational level in 1999, just broke even in 2000 and lost money in 2001. But after ACC's takeover, in the last year in a 15 month period, the company's turnover increased to nearly Rs 208 crore from Rs 136 crore; it made an operational profit of Rs 15 crore and a net profit of nearly Rs 9 crore.

The stock market too has taken cognisance of these changes with the EIL share price zooming from around Rs 20 to Rs 87.35 .

Mr Manish Sanghi said the company would be investing about Rs 10 crore in augmenting the capacity of its plant in Coimbatore from 6,000 tonnes per month to 14,000 tonnes a month and modifications of the old plant here also are being taken up. The overall annual production capacity of the company would increase to nearly 4 lakh tonnes (both roofing and boards) from the existing 3.08 lakh tonnes.

EIL has factories in Kymore (Madya Pradesh), Kolkata, Nashik and Coimbatore.

He expected the industry to grow by at least 15 per cent during the current year and EIL may show a growth of at least 20 per cent.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Kochi Refineries on modernisation path

GNFC plant mishap claims 5 lives
Jai Balaji to float Rs 10-cr IPO
BSES gets 50 offers for power purchase plan
BSES to introduce pre-paid power
Shriram group strikes it rich in Hi-Tech Arai deal
Astec Valve gets Dh1 m orders for `GasFuse' product
Kopran product bags US patent
Caterpillar to increase sourcing from India
Natco gets DSIR award
BSES net jumps to Rs 88.83 cr in Q2
Padmalaya Tele Q2 net up
Micro Labs acquires Dr Reddy's Pondy plant
Bikanervala to set up units in Canada, Dubai
Voltas sets up shop in Dubai
Chinese ceramic co to set up unit in Gujarat
Le Meridien hotels at Ahmedabad, Kovalam, Jaipur soon
Tata group cos exempted from open offer for TFL
Strides signs supply pact with Japanese co
Genome, Shasun in bioinformatics deal
FMCG majors brainstorm to ease supply-chain bottlenecks
Cost management workshop by Kerala-CII
FACT revival: Time running out?
Rival unions clash; Chittivalasa mill locked out again
RSP's new mantra to achieve 100% capacity utilisation
Everest on growth path; plans fresh investments
Alloy Steel's saleable steel output up 15 pc
New Ranbaxy CFO

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

Copyright 2003, 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