The Hindu Business Line : Camlin plans new facility in Jammu for colour products

Mr Dilip Dandekar, Managing Director, Camlin Ltd, told Business Line, “We have decided to set up a model unit for manufacturing colours such as artist, student and poster colours at our new unit in Jammu. We intend investing and modernising our facilities to take advantage of tax benefits in this State.”

Modernising plant

While Camlin has been present in Jammu for the past 35 years, it was not allowed to manufacture as there was reservation for small-scale manufacturers. It was manufacturing its pencils through its associate company – Triveni Pencils in the State. “Our associate company was sourcing wood from the Krishna Valley and making pencils for us all these years but since the last budget there has been de-reservation in the small-scale sector. This has given us an opportunity to invest and modernise the existing plant and also plan for future manufacturing in the State.”

Tax exemptions

With tax exemptions in areas such as excise and sales tax, Camlin expects its new manufacturing facilities in the State to help it improve its bottomline. “There will be benefits in terms of direct taxes such as income-tax as well. This will help us in increasing our profits,” states Mr Dandekar.

Recently, the company has made an allotment of 12 lakh equity shares of Rs 10 each at Rs 175 per share amounting to Rs 2,100 lakh on preferential basis to foreign institutional investors. With this raising of funds, Camlin Ltd intends to further expand capacity by incurring capital expenditure for modernising plants at Tarapur, Taloja, Vasai and its new facility in Jammu.

It has also roped in Mr Anil Singhvi, former managing director of Ambuja Cements and now Managing Director, I-Can Investment Advisors, as a board member.

Trying to capture new markets, Camlin has been making inroads in the US with its brand – Camelia for the past five years. “It will take us another five years to establish our Camelia brand in the US. We may be big in India but in the US it is a struggle for any Indian brand to establish itself,” says Mr Dandekar. Last year, the Rs 225-crore Camlin Ltd grew between 20 and 25 per cent with its stationary and art colours post the de-merger with its chemicals business.

The company’s operating profit before tax and VRS compensation stood at Rs 456.33 lakh for the half year ended September 30, 2007 against Rs 273.94 lakh for the corresponding period of the previous year showing an increase of 66 per cent in its consumer products division.

More Stories on : Brands | New Projects | Office Equipments & Supplies

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Royal Orchid Hotels on expansion mode

Rel Money ties up with NGO; targets rural investors

Canon mulls series of advertising campaigns to promote printers

Dabur unveils hard surface cleaner

Restoplus in Bangalore

Arrow aims at becoming lifestyle brand

Camlin plans new facility in Jammu for colour products

‘Kiranas and local grocers will survive’

Tatas’ supercomputer Eka adjudged world’s fourth fastest