Beruflich Dokumente
Kultur Dokumente
ON
“EXPORT DOCUMENTATION
IN
INDIA GLYCOL LTD. ”
Submitted to
GRAPHIC ERA UNIVERSITY
In partial fulfillment of the Requirements for the award
of Degree in
MBA (International Business)
Submitted to : Submitted by :
Mrs. Rupa Khanna Arpit Singh
Programme Coordintor MBA (IB/IT) Roll No : 1400046
Faculty of Management MBA (IB)
Graphic Era University
Arpit singh
MBA (IB)
MBA (IB/IT) for her guidance, critical comments, inspirational discussion and
this work effectively. I also thanks to my friends, who put the germs of idea
related to this project and extended their continued inspiration. This training was
Arpit
Singh
MBA (IB)
The starting of the road of chemical industry and the status in the Indian
market are improving day by day. By some facts and figures you will get to
know the contribution of chemical industry in the economic growth of the
country. After this India Glycol Ltd. profile come in to picture, Its business
strategies by using world class technology different range of chemical products
and their performance in different industries.
If we talk about global market there are different products which are
export from the country with legal export documentation product. It also shows
SWOT analysis CSR and R & D support to reach the different customer
domestic as well as global. At the end director report will give us a financial
internal and external growth opportunities and its present performance. They
mainly emphasis are on the Industrial chemical products in all over the globe.
Arpit
Singh
MBA (IB)
Playing every stroke of excellence India Glycol Ltd., Kashipur, has set
a strong foothold in the chemical industry. With the assistance of a well qualified
team, and brought a superlative range of Industrial Inorganic Chemicals and
laboratory chemicals etc. Today, IGL is well reckoned as one of the overriding
Laboratory Chemicals Manufacturers and as the most preeminent Industrial
Chemical exporter based in India. This report will tell you about how “A idle
stone could be become a weapon for person who knows its value” that means
how chemical transformed into a chemical industry and after a decade it become
a part of economic growth of the county.
Chemical industries can be traced back to Middle Eastern artisans, who refined
alkali and limestone for the production of glass as early as 7,000 BC, to the Phoenicians
who produced soap in the 6th cent. BC, and to the Chinese who developed black
powder, a primitive explosive around the 10th cent. AD In the Middle Ages, alchemists
produced small amounts of chemicals and by 1635 the Pilgrims in Massachusetts were
producing saltpeter for gunpowder and chemicals for tanning. But, large-scale chemical
industries first developed in 19th cent. In 1823, British entrepreneur James Muspratt
started mass producing soda ash (needed for soap and glass) using a process developed
by Nicolas Leblanc in 1790. Advances in organic chemistry in the last half of the 19th
cent. allowed companies to produce synthetic dyes from coal tar for the textile industry
as early as the 1850s.
In the 1890s, German companies began mass producing sulfuric acid and, at
about the same time, chemical companies began using the electrolytic method, which
required large amounts of electricity and salt, to create caustic soda and chlorine. Man-
made fibers changed the textile industry when rayon (made from wood fibers) was
introduced in 1914; the introduction of synthetic fertilizers by the American Cyanamid
Company in 1909 led to a green revolution in agriculture that dramatically improved
crop yields. Advances in the manufacture of plastics led to the invention of celluloid in
1869 and the creation of such products as nylon by Du Pont in 1928. Research in
organic chemistry in the 1910s allowed companies in the 1920s and 30s to begin
producing chemicals for oil. Today, petrochemicals made from oil are the industry's
largest sector. Synthetic rubber came into existence during World War II, when the war
cut off supplies of rubber from Asia.
Since the 1950s growing concern about toxic waste produced by chemical
industries has led to increased government regulation and the establishment of the
Environmental Protection Agency (1972). The leakage of toxic chemicals at the Union
Export Documentation in IGL - 8 - Graphic Era University,
Dehradun
Carbide plant in Bhopal , India (1984), was the worst industrial disaster in history and
heightened public concern about lax environmental regulations for chemical companies
in developing countries. Beginning in the 1980s, U.S. corporations faced expanding
competition from foreign producers, including some Third World oil producers who
have set up their own oil refining and petrochemical industries. In 1997 the U.S.
chemical industry produced about $389 billion worth of products and employed
1,032,000 workers. It exported about $71 billion worth of chemicals.
The wide and diverse range of products can be broken down into several
categories, which include inorganic and organic (commodity) chemicals, plastics
and petrochemicals, drugs and pharmaceuticals, dyes and pigments, pesticides
and agrochemicals, fine and specialty chemicals, and fertilizers.
Foreign Trade :-
India was a net importer of chemicals in early 1990s , but has now become a net
exporter due to reduction in Imports because of implementation of many large scale
petrochemical plants like Reliance etc. and also because of tremendous growth of
exports in sectors like bulk drugs and pharma, pesticides, dyes and intermediates.
In the U.S. there are 170 major chemical companies. They operate
internationally with more than 2,800 facilities outside the U.S. and 1,700 foreign
subsidiaries or affiliates operating. The U.S. chemical output is $400 billion a year. The
U.S. industry records large trade surpluses and employs more than a million people in
the United States alone. The chemical industry is also the second largest consumer of
energy in manufacturing and spends over $5 billion annually on pollution abatement.
In Europe, especially Germany, the chemical, plastics and rubber sectors are
among the largest industrial sectors. Together they generate about 3.2 million jobs in
more than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3
of the entire manufacturing trade surplus of the EU. The chemical sector accounts for
12% of the EU manufacturing industry's added value.
The chemical industry has shown rapid growth for more than fifty years. The
fastest growing areas have been in the manufacture of synthetic organic polymers used
as plastics, fibres and elastomers. Historically and presently the chemical industry has
been concentrated in three areas of the world, Western Europe, North America and
Japan (the Triad). The European Community remains the largest producer area
followed by the USA and Japan.
Future Forecasts
• Due to its low cost infrastructure, the country has huge export potential.
According to a recent report, India's chemical exports have the potential
to rise US$ 300 billion by 2015. This defines an investment of US$ 50
billion in chemical industry alone.
• The country has the capacity for high value addition being close to
Middle East. This is a cheap and ample source for petrochemical
feedstock.
- The company also entered into an agreement with Toyo Engineering India Ltd.,
for implementing the project within guaranteed cost and time limit.
1986 - The name of the Company was changed to `India Glycols Limited'
Effective from 4th September.
1992 - The Capacity of MEG was enhanced to 25,000 tones per annum.
2003 -The Board of Directors at their meeting held on December 4, 2003 have
approved the merger of wholly owned subsidiary company CDS International
Ltd with the company.
The Board of Directors at their meeting held on December 4, 2003 has approved
the merger of wholly owned subsidiary company CDS International Ltd with the
company. On Novembers a public limited company as `U.P. Glycols Limited'
and obtained the Certificate of Commencement of Business on 3rd February,
1984. The company was promoted by Vam Organi Chemicals Ltd.The company
manufactures mono-ethylene glycol (MEG), diethylene glycol (DEG) and
triethylene glycol (TEG).
SWOT ANALYSIS
Strength
IGL is uniquely positioned as a petrochemical manufacturer through the
organic route, and is probably the largest player in the world in its segment.
Though the gross block of the company is Rs9.7bn, its replacement cost is
estimated to be ~Rs32bn. This along with technological know how, would act as
a strong barrier for entry, thereby offering competitive safety for the company.
The Kashipur unit is fully integrated one, thereby ensuring operational
smoothness. The company is altering its mix in favour of EO derivatives. This
Weakness
IGL’s margins could face pressure if MEG prices continue to fall vis-a-
vis hikes in prices of molasses and ethanol. While IGL is integrating backwards
to reduce the price volatility in its raw materials, the same cannot be eliminated
and hence would continue to dog the operations of the company. Newer
capacity expansion being undertaken in the M. East (Saudi Arabia & Iran) has
the potential to lower the landed cost of imported MEG in India and to impact
realisations. Currently, POY/PSF industry accounts for ~70% of MEG
consumption in India and ~35% of IGL’s revenues. This imparts high sensitivity
to an industry and any slowdown in that sector has the potential to impact IGL’s
earnings.
Opportunities
IGL has flexibility in using ethanol or molasses as its feedstock for
MEG/EO manufacturing, which can help optimise its raw material cost. By
setting up co-generation plants, IGL will be able to lower its power costs (12%
of net sales in FY08) to 8% of net sales in FY10. Expansions in the polyester
industry (Indo Rama, JBF, Reliance and Garden Mills) will ensure offtake of
IGL’s incremental capacity. IGL is diversifying its revenue stream through
venturing into Nutraceuticals, CO2 and Real Estate, which are expected to
account for ~10% of revenues by FY10.
We have the largest ethoxylation facility in India, using the 2nd generation
loop reactor technology from Pressindustria, Italy. The vapour-vapour phase
reaction of this technology ensures minimum residence time of unreacted EO
and faster reaction late. This result in ethoxylates of high purity, low colour and
odour, low aldehyde, minimum free EO and dioxane content thus eliminating
any interference in subsequent applications.
PRODUCTS PROFILE :
MEG / DEG / TEG
• Internationally proven technology with high purity, low colour & odour.
• Wide range based on Nonyl Phenol, Octyl Phenol, Card Phenol &
Styrenated Phenol under the brand name of ALPHOX series.
POLYETHYLENE GLYCOLS
• Internationally proven technology with high purity, low colour & odour
meeting Indian, International Pharmacopea, IP / USP / NF specifications.
• Products are essentially non-toxic, stable & versatile solvents find various
applications:
EO / PO COPOLYMERS
• Internationally proven technology with high purity, low colour & odour
meeting Indian, International standards.
We can tailor make specific moles & products as per customer requirements
Export Documentation in IGL - 29 - Graphic Era University,
Dehradun
FATTY ALCOHOL ETHOXYLATES
• Internationally proven technology with high purity, low colour & odour.
• Internationally proven technology with high purity, low colour & odour.
• Fatty Acid Ethoxylates such as Stearic Acid, Lauric Acid etc. find
application mainly in textile formulation and manufacture of spin finishes.
• Internationally proven technology with high purity, low colour & odour.
• Internationally proven technology with high purity, low colour & odour
meeting Indian, International Pharmacopea, IP / USP / NF specifications.
OTHER ETHOXYLATES
• Internationally proven technology with high purity, low colour & odour.
GLYCOL ETHERS
• Other Glycol Ether Acetates can also be considered and made as per
customer requirement.
Brake Fluids
Antifreeze Coolant
PERFORMANCE CHEMICALS
OIL & GAS DRILLING OIL & GASREFINING LUBRICANT
PRODUCTION
SHALE STABILISER
SPOTTING FLUID
OIL SOLUBLE
DEMULSIFIER
WATER SOLUBLE
DEMULSIFIER
DESALTER /
DEMULSIFER
CORROSION
INHIBITOR
POUR POINT
DEPRESSANT (PPD)
FLOW IMPROVER
FOR CRUDE OIL
NON EMULSIFIER
DEOILER
GUAR GUM
INDUSTRY APPLICATION
OIL & GAS DEEP OIL WELL DRILLING
ENHANCED OIL RECOVERY
PLUGGING HOLES & POUR POINT DEPRESSANTS
AGROCHEMICALS
GLYCOL
Fatty
Alkyl phenol ethoxylates alcohol Fatty Natural oil ethoxylates
ethoxylates amine
Alkyl Styrenated Lauryl ethoxy Castor oilSoya oil
phenol phenol alcohol lates ethoxylates ethoxylates
ethoxylates ethoxylates ethoxylates
TEXTILE
• Comprehensive range of products required at various stages of yarn &
fabric processing based on
• International technology.
• A complete range of glycols; MEG, DEG, TEG and PEG's of molecular
weight ranging from 200-4000.
• Emulsifier, wetting agents, dispersing agents, leveling and lubricating
agents, with low PEG content for better surfactancy.
• IGL offers Guar Gum products duly approved under U.S. Federal
Register as Generally Recommended As Safe - GRAS Category for Food, Feed
& Pharma applications. These products are used in toothpaste, cosmetics,
shampoos, hair dyes etc.
PERFORMANCE CHEMICALS
GUAR GUM
APPLICATION
TOOTH PASTE & COSMETICS
SHAMPOOS
HAIR DYES
PHARMACEUTICALS
• IGL offers a variety of nonionic ethylene oxide condensates that are
stable in mild acids and electrolytes.
• Nontoxic, free of carcinogenic impurities, polyethylene glycols with
minimum free EO and dioxane content which meets the stringent
pharmacopia specifications such as IP / USP / BP / NF.
Our Extra Neutral Alcohol is used for manufacture of bulk drugs and
formulations.
Glycol Ethers
Ethylene Glycol Mono Di Ethylene Glycol Mono
Ethyl Ether Ethyl Ether
Pharma
APPLICATION
TABLET BINDING
VISCOSIFYING SYRUPS
DISTINTEGRATING AIDS
SUSPENDING AGENTS
POTABLE ALCOHOL
MINING
IGL offers Guar Gum products, which are used in coal mining, concentration of
ores,
GLYCOLS
GUAR GUM
APPLICATION
CONCENTRATION OF ORES
COAL MINING & COAL SLURRY - FLOWING AID
FLOCCULATION & BETTER RECOVERY
STICK EXPLOSIVES
BLASTIC SLURRIES
WATER CONTROL & GELLING AGENT
Performance Chemicals For MINING Industry
We develop speciality products for flotation of iron ores, cleaning of calcite and
collectors for different types of silicate flotation stick explosives etc.
For HEALTH CARE & FOOD PROCESSING industry, IGL offer GUAR
GUM, which is globally used in Dairy & Frozen Foods, Bakery, Canned
Foods, Sauces, Beverages and various health care recipes.
Capability to produce various viscosity ranges and different mesh sizes as per
customer's requirement.
Exports to entire globe under the brand name of IGGUAR. Approved under U.S.
Federal Register as Generally Recommended As Safe - GRAS Category for
Food, Feed & Pharma applications.
IGL's Product Range for HEALTH CARE & FOOD PROCESSING Industry
GUAR GUM
INDUSTRY APPLICATION
Health Care Slimming Regimen
Special Dietetics & Diabetic Diets
Soluble Fibre and Various Clinical
Nutrition Recipes
Food Processing Dairy & Frozen Foods
Bakery
Canned Foods
Sauces & Salad Dressings
Beverages & Instant Mixes
Brake Fluids
IGL manufacture both DOT-3 and DOT-4 grades of brake fluid with know-
how from M/s Sulzer Chemtech, Switzerland, which are the largest Glycol
Ether Plant in India and the only continuous process Glycol Ether plant in
India ensuring consistent quality.
Product Range: DOT-3, DOT-4 brake fluids under brand name of IGDOT
series and components for brake fluids such as PEGs, DEG, and Higher Glycol
Ethers are also available.
Antifreeze Coolant
GLYCOL
MONO ETHYLENE GLYCOLSDI ETHYLENE
(MEG) GLYCOLS (DEG)
AUTOMOTIVE
ANTI FREEZE
COOLANT
Export Documentation in IGL - 48 - Graphic Era University,
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BRAKE FLUID
FIBRE GLASS
DETERGENTS
PERFORMANCE CHEMICALS
DETERGENT / CLEANING
SODIUM LAURYL ETHER
SULPHATE
SODIUM LAURYL SULPHATE
NONIONIC & ANIONIC BLEND
• Eco-friendly products for improved fabric care, skin care and higher hard
water tolerance.
Paper
IGL offers guar gum products which are used in reduction of fines, increasing
strength & burst factor, improving rattling etc.
Paper Flotation Washing Stock Paper Press Machine Effluent Pulping Coating Bleach ing
machine felts wire treatment
plant
De-inking
chemicals
Defoamer
Retention
drainage aid
Felt cleaner
Wire cleaning
Strength
additive
Cooking aid
Peroxide
stabiliser
GUAR GUM
INDUSTRY APPLICATION
PAPER WET & DRY END ADDITIVES
REDUCTION OF FINES
INCREASING STRENGTH & BURST FACTOR
IMPROVING RATTLING
o Pulping
o Brown stock washing
o Paper machine
o Coating
o Effluent Treatment Plant
o De-inking chemicals
o Cooking aid
Strength Additives
• IGL offers Guar Gum products which used in adhesives glue & paints.
GLYCOLS
PERFORMANCE CHEMICALS
GUAR GUM
APPLICATION
ADHESIVES GLUE & PAINTS
Guar Gum
• Catering mainly to food, feed & pharma, textile, printing, industries etc.
And specialty products in the area of oil & gas and lubricant.
• We have one of the largest distilleries in Asia for manufacture of ena with
capacity of 20 million liters per annum.
Ena is used as reaction aid in pharmaceutical and as volatile carriers in flavor &
fragrances.
We have established separate facilities for blending & bottling of India made
foreign liquor (imfl) & country liquor.
FERTILISER:
CERAMIC :
IGL has developed Speciality Chemicals for various ceramic applications such
as decorative tiles printing.
RUBBER :
IGL offers Guar Gum products, which are used in various applications such as
air freshner gels, agarbatties & incense sticks, photography, ceramic,
construction industry, synthetic resins & pet food
Our Extra Neutral Alcohol is used as volatile carriers in Flavour & Fragrances.
EXPORT DOCUMENTATION
Export is effected through; Sea/Air/Land route/Post/Courier services
Documents normally prepared are Invoice, Packing List, Shipping Bill (as per
the requirement of availing the benefit either under the Duty Drawback Schemes
or DEPB or Duty Free),Marine Insurance cover, Certificate of Origin,
Inspection/Test Certificate, wherever required, Airways Bill/Consignment Note,
Good Receipt, Postal Receipt, Courier Company Receipt, Bill of Lading, Mate
receipt, Invoice duly attested by Customs, Bank Attested Invoice, Bank
Certificate of Export and Realization. These documents are required to be
prepared carefully and kept properly.
Precaution must be taken to keep in safe custody EP Copy of Shipping
Bill, Bank Certificate of Export and Realization as these are two important
documents on the basis of which incentives, benefits and facilities can be
claimed under the Foreign Trade Policy.
Export documents have to be prepared for various purposes viz.
1. Declaration of export as per exchange control regulations of his
country.
2. Transportation of the goods.
3. Other purpose
4. Customs clearance of the goods.
1. Declaration forms
All exports to which the requirement of declaration applies must be
declared on appropriate form as indicated below:
GR Form: To be completed in duplicate for export otherwise than by post
including export of software in physical form i.e. magnetic tape/discs and
paper media.
SDF Form: To be completed in duplicate and appended to the Shipping
Bill for exports declared to customs offices notified by the Central
Government which have introduced EDI system for processing shipping
bill.
PP Form: To be completed in duplicate for export by post.
SOFTEX: To be completed in triplicate for export of software otherwise
than in physical form i.e. magnetic tapes/dics and paper media.
2. Documents for transportation of goods
a. Airways Bill/Air Consignment Note
The receipt issued by an Air line company or its agent for carriage
of goods is called Airways bill or consignment note. The airway bill
consists of three originals and six to eleven copies. It is a non-negotiable
Reasonable growth in the overall export sales in the current year. It has
been granted One Star Export House status by the Government of India, Office
of the Jt. Director General of Foreign Trade. With its improved performance,
the Company expects further improvement in this status.
The Directors are pleased to present the twenty fourth Annual Report
together with the audited accounts of the Company for the year ended 31st
March, 2008.
Financial results (Rs. in lacs)
year ended year ended
31.03.2007 31.03.2008
Dividend
Your Directors are pleased to recommend a dividend of Rs. 4 (Rupees
Four only) per equity share. The outgo on dividend will be Rs. 1304.85 lacs,
including tax on dividend.
Sales and other income for the year have been Rs. 153867.94 lacs,
compared to Rs 108122.23 lacs last year, registering a growth of 42%. Profit
before depreciation and tax for the year has been Rs. 30367.34 lacs as compared
to Rs 10511.46 lacs last year, showing a growth of 189% and net profit after tax
for the year has been Rs. 17852.65 lacs. Growth in profit was possible as a
result of increased production and productivity volume, higher sales realization,
better cost management and operational efficiencies.
During the year, your Company produced 122394 MT of MEG
compared to 88350 MT last year. Ethoxylates and performance chemicals
production have been 32215 MT, compared to 28952 MT last year. Glycols
ethers and acetate production has been 40793 MT, compared to 25517 MT last
year.
The Company has produced 186363 KBL of alcohol at its distilleries at
Kashipur and Gorakhpur, which has supplemented ethanol required for
production of MEG and has reduced the dependence on purchase of alcohol.
The Company has also produced 27529 KBL of potable alcohol.
Marketing
Sale of MEG has been 121844 MT compared to 96120 MT last year,
registered a growth of 27% over the last year. The sale of ethoxylates and
performance chemicals has been 31981 MT compared to 30343 MT last year,
registered a growth of 5% over the last year. Sale of glycols ethers and acetate
have been 41859 MT compared to 24637 MT last year, registering a growth of
70% over the last year.
Guar gum
During the year, your Company achieved total sales of Rs. 534 lacs of
the guar gum products out of which the export turnover was Rs. 525 lacs,
compared to total sales of Rs. 1291 lacs out of which the export Turnover was
Rs. 1288 lacs last year. The Company is diversifying into the field of guar gum
derivatives used for the oil field industry and textile industry.
Industrial gases
The Company produced 77246457 NM3 of oxygen and 23226354 NM3
of nitrogen during the year. Both the oxygen and nitrogen were successfully
marketed and also used for own requirement. The industrial gases division also
produced 1723494 NM3 of argon, which was also marketed at remunerative
price.
Finance
During the year under review, the Company has raised foreign currency
loans of US$ 5.83 million and rupee loans of Rs. 47 crore to partly finance the
project cost of the ongoing capital expenditure and for
Construction of the corporate office. The borrowing cost of funds has
increased to over 8.5% as compared to 7.5% last year.
The Company has been regular in meeting its obligations towards
payment of principal/interest to financial institutions/banks/debenture
holders/fixed deposit holders.
Listing of securities
Fixed deposit
The amount of fixed deposit held as on 31.st March, 2008 was Rs.
2090.80 lacs. There are no overdue deposits except for unclaimed deposits
amounting to Rs. 38.33 lacs.
Directors
Your Directors at their meeting held on 30th April 2008, expressed their
condolence on the sad demise of Shri M.L. Bhartia, the Chairman of the Board
of Directors. The late M.L. Bhartia was the founder promoter Director of the
Company and the guiding force behind the successful setting up of the state-of-
the-art chemical manufacturing plant at Kashipur in the rich belt of sugarcane-
growing areas of erstwhile Uttar Pradesh. The Board recalled the late M.L.
Bhartias outstanding leadership in guiding the Board to steer the Company to its
current status as one of the leading chemical manufacturing companies of India.
The Board appreciated his strong commitment, deep -dedication and active
participation in leading the Company till his last breath. The Board also recalled
his visionary leadership, Unstinted efforts and foresight ness in the
implementation of the various expansion and diversification plans of the
Corporate Governance
The Board of Directors supports the broad principles of Corporate
Governance. The report on Corporate Governance as stipulated in Clause 49, as
amended, of the Listing Agreement with the stock exchanges for the year ended
31st March, 2008, and Auditors Certificate on Corporate Governance are
appended herewith.
Auditors
The Auditors, M/s. Lodha & Co., retires at the ensuing Annual General
Meeting and offer themselves for reappointment. They have confirmed that they
are eligible for reappointment under Section 224(1 B) of the Companies Act,
1956. Environment, energy conservation, technology absorption, etc. Your
Company has taken various measures for energy conservation at its chemical
plant, such as synchronization of UPCL with captive power grid, resulting in the
reduction of high-cost RFO consumption in DG sets. Additionally, a new
bagasse-fired boiler has been commissioned in the RAB unit for steam
Social responsibility
Good governance demands adherence to social responsibility coupled
with value creation in the larger interest of the general public. Your Company,
Directors and its dedicated employees continue to contribute towards the society
through several worthwhile causes. Your Company aims to enhance the quality
of life of the community in general and has a strong sense of social
responsibility.
The range of our activities begins in and around Kashipur (Uttarakhand)
by organizing regular medical camps (three days a week) so that villagers get
medical assistance free of cost. The Company actively participates in organizing
blood donation camps, plantation of trees for better environment, facilitating in
the constructing roads, bridges, drains and installing street lamps and hand
pumps for drinking water, benefiting nearby areas. The Company also extends
support to the victims of flood during monsoon, distributes blankets to the poor
during winter, promotes sports and socio-cultural activities in the state of
Uttarakhand, supports the local administration in fighting and managing fire
Acknowledgment
Your Directors place on record their deep appreciation of the support
extended by the Central Government, states of Uttarakhand and Uttar Pradesh,
financial institutions and banks and look forward to their continued support.
1.Net Sales
Q1 FY2009: At Rs 2,500.6 million from Rs.2, 712.1 million.
2. PAT
Q1 FY2009: At Rs. 121.3 million from Rs. 356.3 million
3. EPS
Q1 FY2009: At Rs. 4.35 from Rs. 12.78 million
The bulls have been waiting in anticipation for some time for the Sensex
to climb over 8000. But the jinx continued as they were thwarted again. The
blame was squarely placed on the government’s decision to hike fuel prices.
However, the optimists far outnumber the pessimists at the street and are betting
for the index to take the final few steps before the week is over.
Right chemistry
Prudent Fund has taken a liking to the chemicals stock India Glycols, as
evidenced by its purchases at the counter. The stock has been on a vertical climb
in the past few weeks and has seen a 79 per cent appreciation in the past month
alone to Rs 259.
Apparently, what has caught the attention of Prudent is the fact that
molasses prices has been falling. To make the connection apparent, India
Glycols makes mono-ethylene glycol (MEG), for which it uses molasses as raw
material.
According to pundits, molasses prices have fallen by more than 25 per
cent in the last month and a further fall is expected. Also Prudent feels that the
stock valuation at 9x is very low, compared with its growth potential.
Going soft
Those who have been wondering about the reason behind the rise in stock
price of Four Soft got their answers. Close on the heels of many domestic and
foreign fund purchases at the counter, came news that the company has signed
an agreement to acquire the logistics software business of UK-based DCS
Transportation for $19 million (over Rs 85 crore) in an all-cash deal. Apparently,
this would make Four Soft the world’s largest transportation and logistics
software product company.
The buying at the counter had taken the stock price from Rs 45 levels a
month back to above Rs 100. Phoenix fund was among the many who had
CONCLUSION