Guj govt asks CARE to `evaluate' GSFC

The Gujarat government has asked CARE Advisory Services to conduct a study of Gujarat State Fertilisers & Chemicals (GSFC) to "evaluate its
competitive position."

"The study is expected to be completed in one month, and aims at an in-depth examination of GSFC and the industry so as to evaluate the company's competitive position," a CARE release said today.

The study, suggested by the expert committee for public sector restructuring set up by the state government, would look into measures required for enhancing shareholder value and a roadmap for implementation, it said.

It will covers five major modules like industry review, assessment of the company, valuation of shares, and needs and recommendations for restructuring, it added.

GSFC had an annual net turnover of Rs 2,182 crore in FY04 and a profit after tax of Rs 174 crore. While Gujarat government bodies hold about 40% of the equity, 21% is held by the Indian public and banks, mutual funds and insurance companies holding the remaining 39%.

The expert committee was set up for advising the government on restructuring of public sector undertaking, and CARE has compeleted similar studies in respect of 30 PSUs on behalf of the government, it added.