Business Daily from THE HINDU group of publications
Wednesday, Jun 27, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Jun 27, 2007 ePaper |
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Markets
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Stocks Jayanta Mallick
Kolkata June 26 Dollex Industries, an integrated sugar-ethanol-alcohol player, has been witnessing spirited growth on Dalal Street recently. The counter today closed at Rs 142.05, up 5 per cent, on the BSE with a traded quantity of 89,395 shares (2-week average 93,052 shares). In the last one week, the stock had gained by over 11 per cent and improved by more than 31 per cent in the past one month. On June 12, it touched a one year-high of Rs 146. While a recent decline in sugar prices saw many companies struggling, Dollex created a new revenue avenue in potable alcohol. Mr Mehmood Khan, Chairman and ED of Dollex, told Business Line today that the company has opted for a new revenue stream in exports of potable alcohol. "We had the licence, but did not use it and restricted ourselves to industrial alcohol (extra neutral alcohol) at our distillery in Goa," he added. The company is making a beginning in India made foreign liquor (IMFL) with production and export of whisky to an Angolan liquor company. "We have given ourselves time till December this year to stabilise IMFL operations and test the export market as well to improve cash flow in a crunch situation in sugar," the Chairman explained. The company plans to turn the Angolan alliance in to a marketing and bottling joint venture for Africa. The company is also scouting for a bottling plant in Karnataka to serve the domestic market.
Broad portfolio
"The company, which took over a Maharashtra cooperative sugar crushing unit - Godavari Manar SSK - in October last year, witnessed the onset of difficult times almost immediately as sugar prices began to melt. But it quickly managed to see the revenue risk in sugar and shuffled across its product portfolio," said a sugar analyst. It is also covering its risk by setting up a new Rs 20-crore ethanol unit with a 45,000 litre per day capacity, near Nanded, Maharashtra, using the entire raw materials from the sugar unit. The company raised the funds partly through its bankers and preferential allotments to the promoters of Cranes Software and Punj Lloyd. The Punj family has picked up a stake in Dollex through Maud Estates, and promoters of Cranes Software purchased shares through K&J Holdings. Dollex, in 2006-07, reported an EPS of Rs 3 against Rs 0.87 in 2005-06.
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