Hindustan Organic Chemicals Ltd
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BSE Code:
500449
NSE Code:
HOCL
Business Profile
Business Profile
Hindustan Organic Chemicals (HINDORG) is engaged in manufacturing and marketing organic chemicals and polytetrafluoroethylene (PTFE) through its subsidiary. The company was incorporated in 1960 under the Ministry of Chemicals & Fertilisers.
The company manufactures products like phenol, acetone, nitrobenzene, aniline, nitrotoluenes, chlorobenzenes and nitrochlorobenzenes. It also produces the versatile engineering plastic polytetrafluoroethylene (PTFE) through its subsidiary, Hindustan Fluorocarbons. The company provides its products to industries like resins and laminates, dyes and dyes intermediates, drugs and pharmaceuticals, rubber chemicals, paints, pesticides and others.
The company has its nitro aromatic complex and polyurethane system house in Rasayani (Maharashtra); the phenol complex at Kochi (Kerala); and the PTFE complex (subsidiary) in Rudraram, (Andhra Pradesh). Its quality assurance system in its Kochi and Rasayani units has been recognized with ISO 9001-2000 certificate by Bureau Veritas Quality International (BVQI). The Kochi unit has received ISO 14001-1996 certification in environmental management system.
Services like training and development, laboratory analysis, and fire and safety are provided by the company. It has a well-established R&D center at Rasayani which is recognized by Department of Ministry of Scientific and Industrial Research. The R&D center has sealed several patents and commercialized them. Some ongoing projects include studies for the improvement on the indigenous chromium-free catalyst, ortho-toluidine, and meta-toluidine.
The registered office of the company is at P.O. Rasayani, Raigad district, Maharashtra-410207.
Financials
Hindustan Organic Chemicals registered a loss of Rs 41 million for the quarter ended June 2007.
Net sales declined 7.88% to Rs 914.2 million for the quarter ended June 2007 from Rs 992.4 million for the quarter ended June 2006.
Total income dipped 3.19% to Rs 969.5 million from Rs 1001.4 million for the quarter ended June 2006.
Recent Developments
15-FEB-07
1. The Company is proposing to study the new products based on the hydrogenation process as suggested by the high-powered advisory committee, Ministry of Chemicals and Fertilizers, GOI for which the company plans strategy of outsourcing hydrogen gas from a nearby industry at very economical rates based on the natural gas norms which would enhance the profitability of the Rasayani unit considerably.2. Further, with the availability of natural gas, the company also plans to put up a power plant based on the furnace oil/natural gas duel feed arrangement to economise on the operation, other than the possibility of putting up a coal-based power plant which would be forming part of the best options available at Rasayani.3. The company is also commercially exploring the prospects of the hydrogen bottling plant which the company has installed, and commercial production commenced from the first week of February 2007 in view of persistent demand from neighboring industries. Further, the company has been able to negotiate with some corporates for continuous requirement. This will improve the capacity utilization of the hydrogen plant which was otherwise operated only for captive use.
26-JAN-07
1. As part of restructuring, the company is in the process of starting the caustic soda/chlorine plant and its auxiliary, an engineering and project management consultant has been appointed, orders have been processed for the procurement of imported spares and consumable parts. Further, it is tentatively proposed to recommission the caustic soda plant by the fourth quarter of the year 2007. (October 2007 to December 2007).2. Further, as a part of implementation of the revival package, the company has settled the outstanding loan in respect of Bank of Baroda (VRS) and the outstanding dues of a number of bond holders as per the company approved restructuring scheme. The restructuring and repayment of the remaining bond holders are still in process.3. The Company has introduced a voluntary retirement scheme (VRS) for its employees. The response is moderate.