NEW DELHI: "In an environment characterized by a global economic slowdown, surpluses in the Asian market and a sharp erosion in product prices and margins, IPCL achieved a record sales volume of 1.53 million tonnes during 2001-02, an increase of six percent as compared to the previous year," Mukesh Ambani, chairman of the Reliance group that has acquired 26 percent stake in IPCL and its management control said Friday at the annual general meeting in Vadodara, Gujarat. The federal government holding in the company is 33.95 percent. Consequent to the acquisition, Reliance Petroinvestments Limited (RPiL), a subsidiary of Reliance group, had made an open offer to acquire 49.6 million shares, representing 20 per cent of the total voting capital of IPCL. As per the terms of open offer, RPiL accepted 57 percent of the shares tendered by the shareholders. With the conclusion of the open offer, RPiL now owns 46 percent equity stake in the company. Gross sales turnover of IPCL was 55.27 billion, a drop of five percent as compared to 2000-01. "This is attributed to polymer prices peaking during the beginning of the year and continuing to fall till December 2001," said Ambani. IPCL made a bullet repayment of $175 million on account of redemption of the Foreign Currency Convertible Bonds (FCCBs), issued in 1997. IPCL produces a wide range of polymers, synthetic fibres, fibre intermediates, and chemicals at its three complexes. Today, IPCL is the second largest petrochemical company in India in terms of sales, assets, net worth and profits. "By March 2003, IPCL is expected to be on the rebound and be recognised as the most successful example of the disinvestment programme of the government," Ambani assured the shareholders. To achieve this, a business integration process has been launched and production targets scaled up. "Feedstock integration between IPCL and Reliance, particularly in naphtha, has already been achieved resulting in lower costs to IPCL. In other areas, several feedstocks have been identified for improving value addition, particularly in the Vadodara complex," said Ambani. For all classes of polymers combined, IPCL ranks as the 31st largest producer in the world with a capacity of 925,000 tonnes per year, while Reliance ranks as the 15th largest global producer with a capacity of 1.7 million tonnes per year. "Together, IPCL and Reliance rank as the 11th largest polymer producer in the world. Thus, IPCL and Reliance working in unison can be a formidable combination," added Ambani. The company board has recommended a dividend of 20 percent, resulting in a dividend pay out of 500 million.
Source: IANS