Business Daily from THE HINDU group of publications
Friday, Sep 18, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Friday, Sep 18, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Corporate
-
Restructuring Industry & Economy - Real Estate & Construction El Forge to sell Chennai property as part of restructure T. Murrali Chennai, Sept. 17 The Chennai-based El Forge Ltd is selling its land at Thuraipakkam for Rs 10 crore as part of its restructuring plan. The company, which made a loss of Rs 18 crore last year on a turnover of Rs 87 crore, will make a “substantial profit” on the transaction. Company officials do not want to disclose the profit figure, pending conclusion of the transaction. The transaction is likely to be concluded in October and as such, the profits will be reflected in the accounts of the third-quarter. The plant and machinery at Thuraipakkam have been moved to Appur, where a new facility has come up at an investment of Rs 100 crore. Mr K. V. Ramachandran, Vice-Chairman and Managing Director, told Business Line that the company is also shifting machinery from its leased facility in Gumidipoondi to Appur. It also has plant in Hosur. Across these plants, the company has an installed capacity is 21,600 tonnes a year. Utilisation levelCapacity utilisation in 2009-10 is only around 35 per cent, but this figure is expected to rise with the company sitting on an order book of Rs 60 crore. Mr Ramachandran said the company was close to getting an order from Tata Motors for whose truck engines it has developed connecting rods. Last year, the company made a loss, hit by the recession and frequent power cuts, which had hampered production. The company’s main problem is debt — Rs 120 crore — on which the annual interest outgo is around Rs 16 crore. The banks are examining a ‘corporate debt restructure’. With business picking up, debt restructure and the infusion of funds from the land sale, business will look up, Mr Ramachandran said. El Forge to raise stake in UK co More Stories on : Restructuring | Real Estate & Construction | Bearings | tings & Forgings
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, 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
|