Mangalam Timber Products (MTP), is set to come out of BIFR after seven years. |
The company was the leading medium density fibre (MDF) board manufacturer in the country and belonged to the Rs 5,500 crore BK Birla group. |
Mangalam Timber management will apply to the Board for Industrial and Financial Reconstruction (BIFR) for de-registration as a sick company in September 2005. |
The managing director of MTP, G S Gupta, told reporters here that the net worth of the company has become positive on March 31, 2005, and it was no longer a sick company. |
MTP was referred to BIFR in 1998. |
Gupta said the accumulated losses of the company had been brought down from Rs 19 crore to Rs 6.44 crore during 2004-05 after the adjustment of deferred tax assets. |
MTP recorded a 400 per cent jump in net profit from Rs 48.37 lakh in 2003-04 to Rs 2.89 crore in 2004-05. |
It achieved turnover of Rs 61.72 crore in 2004-05 from Rs 43.66 crore in 2003-04. The company was hoping to record a 20 per cent growth in turnover in the current fiscal. |
According to Gupta, the company was now giving a special emphasis on plantation activities to ensure steady supply of raw materials in the future. |
"We have earlier initiated farm forestry scheme in Orissa and Chhatisgarh in 2001. This year we have an ambitious plantation target of 20,000 acres, a majority of this will be in Andhra Pradesh," he said. |
One of the directors of Mangalam Timber, S K Parik, said the first batch of plantation would mature by 2006 and would be ready for use. |
"We hope that by end of 2008-09 entire raw material requirement can be sourced from our indigenous plantations. This will give us a tremendous advantage in the future," he said. |
Parik said the group was hopeful that MTP would be operating at 100 per cent capacity from the present level of 80 per cent by the end of 2005-06. |