Gouri Prasad Goenka group controlled Bakelite Hylam, one of the largest exporters of laminates from India and the pioneers of thermostat plastics, has been registered with the Board for Industrial and Financial Reconstruction as a sick company under Sick Industrial Companies (Special Provisions) Act, 1985 due to erosion in its net worth.
In the quarter ended December 31, 2001, the company posted a net loss of Rs 7 crore on a total income of Rs 7.6 crore. Interest payment stood at Rs 2.3 crore. The company adjusted balance in the revaluation reserve of Rs 32.5 crore against the losses as on March 31, 2001. For the quarter ended March 2000, the company had reported a net loss of Rs 1.8 crore.
The company produces products like copper-clad laminates, foundry resin, phenolic resin, polyester resin, insulating varnish and phenolic foam.
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Sources said, group company Stone India had earlier bought out the heritage surface textures division from Bakelite Hylam for an undisclosed sum. Heritage and Roller were the brands under the division.
Analysts said the buyout was beneficial for both the two companies. "While it improved Bakelite's cashflow, it reduced Stone India's dependence on railways," they said.
As on June 30, 2001, promoters held 68.87 per cent in the company, with the balance being distributed among mutual funds, Unit Trust of India, banks, financial institutions, insurance companies, private corporate bodies, Indian public and the Andhra Pradesh state government.