The Hindu Business Line : SEZ hopes fuel Hindustan Organic Chem

Of late, Hindustan Organic Chemicals (HOCL) has been seeing a significant spurt in activity and price, as the buzz about the possibility of setting up a chemical SEZ on surplus land near Patalganga in Maharashtra has been drawing attention. The counter has gained 20 per cent in the past one week and 43.56 per cent in the past one month. Around 15 lakh shares changed hands on Tuesday on the BSE (fortnightly average 4.5 lakh shares). HOCL, a 57-per cent Central Government-ow ned company, returned to the black in 2006-07 and produced an EPS of Rs 3 against a negative earning of Rs 8.42 in the year to March 31, 2006.

Mr Arvind S. Didolkar, CMD, confirmed to Business Line from Patalganga that the company was looking into the possibilities of diversification, including setting up a chemical SEZ. He, however, clarified that HOCL had initiated a pro cess of finding out an organic growth plan and a comprehensive report from qualified consultants would form the basis of a formal decision at a later date. Without giving the specific timeframe, Mr Didolkar only said that proposal would come up for Government’s clearance within the current fiscal.

Availability of gas as feedstock at the plant location has thrown up a number of growth opportunities and cost reduction possibilities. “The report would throw light on all the related aspects such as SEZ, joint venture, new products and production of power from gas”, he added.

Sources close to the development suggested that HOCL’s land (on long-term lease from the State) can be developed into an SEZ and the Centre is favourably inclined towards such a proposal.

Jayanta Mallick

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