Kolkata-based Jayshree Chemicals is expecting a 16 per cent drop in turnover in the current financial year due to lower prices of caustic soda.
In the last financial year, the company had a turnover of about Rs 66 crore, said DK Maheshwari, executive director, Jayshree Chemicals here today.
In the current quarter, the prices of caustic soda have come down to Rs 18,000 per metric tonne, against about Rs 21,000 per metric tonne during the first three quarters of 2009-10, he said.
This fall in prices was on account of increased imports of caustic soda in the last three months, he added.
“The trend is temporary and the prices are expected to firm again to Rs 20,000 per metric tonne levels from April-end,” he said.
The company has embarked on a Rs 150-crore expansion plan to raise its daily caustic soda production capacity to about 152 tonnes from the present 65 tonnes by December 2010.
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The company plans to raise part of the money for the expansion by issuing 23.99 million equity shares for Rs 15 a share to existing shareholders on a rights basis in the ratio of 9 shares for every 2 shares held as on February 18.
The rights issue will generate up to Rs 35.99crore, which will be utilised to support the expansion plans, he said.
This apart, to cater to its own plants the company is planning to set up its own hydel power plant in Orissa with a capacity of 32 MW. The cost of putting up the plant would be about Rs 220 crore, and the work is expected to start next year.