On Bengal Chemicals & Pharmaceuticals' list of possible collaborators is Indian Petrochemicals Corporation Ltd and Hindustan Organics Corporation Ltd.
Bengal Chemicals' has received the consent of the central government for collaboration with other public sector chemical companies.
In the event of this effort bearing fruit, the ratio of the company's chemical division in the total production range will undergo radical changes.
At present, the company's chemicals division produces 25 per cent of the total output of the company, while the pharmaceutical sector turns out 30 per cent and the balance 45 per cent being contributed by the home products division.
After coming out of the net of the Board for Industrial & Financial Reconstruction, Bengal Chemicals has drawn up a plan to revitalise all its divisions but the stress on chemicals sector is a distinct possibility in the context of the present negotiations.
BCPL feels optimistic about a thrust on the chemicals division as the mark-up has started at Haldia Petrochemicals project.
Meanwhile, BCPL has neutralised the accumulated loss of Rs 100 crore through the process of implementation of the Board for Industrial & Financial Reconstruction-prepared rehabilitation scheme.
It was allowed write-off of central loan of Rs 32 crore, convert Rs 32 crore loan into zero-based debentures and further convert Rs 24 crore loan into equity shares.
Bengal Chemicals has also realised Rs 15.7 crore through sale of eight acres of land from its 36 acres in possession in the Maniktala area in eastern Calcutta.
The realised amount has already been disbursed to liquidate the debts of the Industrial Reconstruction Bank of India (Rs 6.32 crore) and the United Bank of India (Rs 4.60 crore).
Rs 50 lakh each have also been paid to the provident fund authorities and to the employees of the company to meet their unpaid wages.
Since the BIFR scheme has allowed Bengal Chemicals to collect Rs 21 crore through sale of land, the company can still plan the sale and collect a further Rs 5.3 crore.
A company source said that it is in possession of 65 acres of land adjacent to its Panihati factory on the northern outskirts of Calcutta.
Some portion of it may be sold out to bolster the financial position of the company.
Negotiations are at present under way with some government agencies in this regard.
The total land in the possession of Bengal Chemicals before the Panihati piece was sold amounted to 104 acres.
While the process of restructuring is going on, Bengal Chemicals has been able to show some positive results in terms of production and sales.
During the first five months of the current year, the company's production reached Rs 12.92 crore against a target of Rs 13 crore, while sales touched Rs 11.5 crore against an estimated Rs 12 crore.
The annual target is set at Rs 35 crore for production and Rs 32 crore for sales.
In l995-96, the target was just exceeded with production of Rs 29.5 crore and sales at Rs 26.5 crore. However, one stumbling block still bothering the Bengal Chemicals management is the large workforce which stands at 1,120 personnel now against the Board for Industrial & Financial Reconstruction prescription of 865.
