Futura Polyesters Ltd
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BSE Code:
500720
NSE Code:
INDIANORG
Business Profile
Business Profile
Futura Polyesters was formed in the year 1962 as Indian Organic Chemicals by B. M.Ghia. In the year 2002. it was named as Futura Polyesters. The registered office of the company is situated at Mumbai. Futura Polyesters (INDORGCH) is a company engaged in manufacturing and marketing of polyester resins, polyethylene terephthalate, PET reforms, and polyester fibres. The company acquired USD 140 million sales in the financial year 2006-07 including exports of USD 71 million.
The company manufactures heavy organic chemicals and synthetic yarn. Its products include plasticizers, glyoxal, phenyl glycine base, phenyl glycine chloride, hydrochloride, pesticides and agro items. Its polyesters synthetic products include polyester fiber and chips. The company`s installed capacity for polyester staple fibre/chips is 38,500 MT per annum, amorphous grade is 58,000 MT per annum, solid state polymer is 57,000 MT per annum, and PET preform is 20,000 MT per annum. Futura Polyesters is associated with Global Companies such as Pepsi, Coke, GE Plastics, Shell Chemicals, Faerchplast-Denmark, Associates Packaging Technologies - USA
The company has its plant in Manali, Chennai, Tamil Nadu. The company exports its products to Europe, the United States and other countries.
Financials
Futura Polyesters registered a 194.06% growth in net profits to Rs 94.10 million for the quarter ended in June 2007 from a profit of Rs 32.00 million for the quarter ended in June 2006
Net sales declined 16.42% to Rs 1,127.20 million for the quarter ended June 2007 from Rs 1,348.60 million for the quarter ended June 2006.
Total income dipped 12.53% to Rs 1201.2 million, from Rs 1373.2 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 1.80 in the quarter ended June 2007.
Recent Developments
02-AUG-07
On July 25, 2007, the board approved a revised scheme of arrangement, subject to necessary provisions and approvals.1. Under the revised scheme, the company will surrender and cancel its aforesaid equity shareholding in Innovassynth. In consideration thereof, Innovassynth will allot 23,850,070 fully paid up equity shares of Rs 10 to the shareholders of Futura Polyesters.
However, the shareholders will not be required to make any payment against this allotment. As per the scheme, for every 11 equity shares held in FPL, as on record date, 5 equity shares of Innovassynth will be allotted.2. The loss of Rs 238.5 million incurred by Futura Polyesters caused due to the surrender and cancellation of the investments in Innovassynth will be first adjusted to the extent of Rs 209.68 million by reducing the face value of the paid-up equity share capital of Futura Polyesters from Rs 10 to Rs 6. The balance will be adjusted by revaluation reserve, share premium reserve, and general reserve if required. 3. After completion of the above reduction in capital and to meet the long term capital needs, repay some debts, and restore the net worth of the company, the scheme provides for further issue by the company of 41,943,631 equity shares of Rs 6 each payable in cash at par to the shareholders of Futura Polyesters aggregating Rs 251,661,786 in the proportion of 8 new equity shares for every 10 equity shares held as on record date.
Future Plans
Futura Polyesters is planning to establish a Biomass Boiler Project at Manali, Chennai, Tamil Nadu. The purpose of the project is to use renewable biomass fired boiler or generating process steam by eliminating three- furnace oil fired boilers so as to cater the total need in polyester manufacturing process. The completion of the project is expected by April 2007