India’s polyester maker Nova approves demerger

28 June 2007 15:02  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Nova Petrochemicals Limited (NPL) said on Thursday that it had approved its demerger plan.

The demerger envisages a division between NPL’s two co-promoters, the Chiripal Group and Gupta Group.

The two textiles groups jointly held a controlling stake of 66.48% in the company.

The company did not divulge the details of the demerger scheme.

NPL manufacturers polyester chips, partially oriented yarn (POY), dully drawn yarn and draw twisted yarn at Moraiya near Ahmedabad in Gujarat.

NPL’s operating profit for the financial year ended 31 March 2007 (FY 2007) fell 69% to Indian rupees (Rs) 140m ($3.4m) from a year ago.

It incurred a net loss of Rs163.7m in FY 2007 against a profit of Rs13.8m last year due to a slump in sales, which fell more than 44%.

The company’s operating profit for the fourth quarter also ended 31 March jumped a whopping 1900% to Rs50.1m. Net sales fell 3.3% to just over Rs665m, while net profit soared 136% Rs34.5m.

($1 = Rs 40.88)

By: Divya Chowdhury
+65 6780 4359

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