During the quarter we also liquidated our rights, title and interest in the SBM Land Redevelopment Project. The funds realized have been deployed to strengthen our balance sheet, which places us in a good stead to push our growth initiatives going forward.
Our long term growth outlook is intact and we believe that our newer businesses have the potential to create significant value going forward”.
Sale of land at West Delhi:
The Company sold its 50% rights, title and interest in SBM Land Redevelopment Project during August 2007.The area of land sold was 38 acres, situated in West Delhi.
DSCL received Rs. 838 crore as consideration on signing the Agreement to Sell. Subsequently, the Company declared a special interim dividend of 150% on equity shares having a face value of Rs. 2.
The total outgo for the interim dividend was Rs. 58 crore including dividend distribution tax of Rs. 8 crore.The net addition to Net Worth,after capital gains tax and dividend,is estimated to be Rs.~ 650 crores.
Chlor-Alkali expansion in progress at Bharuch:
Execution of the Company's Chlor-alkali expansion from 200 TPD to 360 TPD at Bharuch is progressing on schedule. DSCL is also setting up a 48 MW thermal power plant at the Bharuch facility in replacement of its existing 24MW furnace oil based power plant.
This expansion is expected to be completed by Q1 FY2009. This will enable generation of economical power which will make its Bharuch facility one of the lowest cost producers in the country, in line with the Kota facility.
LNG supply begins at the Fertilizer plant at Kota:
LNG supplies commenced on spot purchase basis during September at the Company's Urea plant at Kota. The Company had carried out the conversion of its Urea plant at Kota to enable use of LNG during Q2 FY2007.LNG is a more cost efficient feed stock and will enable the company to improve its cost effectiveness.
Sugar's co-gen power capacity to be expanded:
The Company plans to expand its co-gen power capacity to 94.5 MW (from 70.5 MW currently) with an exportable surplus of 46MW (from 27.5 MW).
This expansion includes an additional capex of Rs. 50 crore to augment its co-gen capacity at Loni and Hariawan sugar mills and is expected to come online by November, 2008.
Hariyali Kisaan Bazaar16 new outlets added during Q2 FY2008:
DSCL's rural retailing initiative aimed at meeting the farming and family needs of the rural household under one roof added 16 new outlets during the quarter.
The Company opened its first outlet in Andhra Pradesh marking its entry into South India during the quarter under review.
The total number of Hariyali outlets stood at 101 as of 30th Sep, 2007, which DSCL plans to expand to 250-300 outlets by the end of FY 2008-09.
The company launched credit services in this quarter, in association with HDFC Bank, with plans to scale it to a full-fledged banking service going forward. The company also stepped up its bulk procurement and trading activity for a variety of crops.
Fenesta Building Systems:
• The Fenesta Building Systems, which was pioneered by DSCL, had an order book of 356,183 windows as on 30th Sep,2007 as compared to 1,05,387 windows on 30th Sep,2006.
• DSCL now has a marketing presence across eleven cities and five fabrication facilities.
• The Company's new products launched continue to witness an encouraging response.
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DCM Shriram Consolidated Limited
marketing@alchempro.com
