Neycer India Ltd., a Spartek Group company, is making a strong bid to regain its yesteryear glory after an unusually inordinate wait at the door-steps of BIFR (Bureau of Industrial and Financial Reconstruction) for a revival package.
After a 17-year wait, the revival package was cleared by the BIFR in October 2008. A taken-over company, Neycer turned sick in 1990 and went to BIFR in 1991.
Post-BIFR approval, the company has turned active and become visible in the market place. Neycer is now trying to take the competition head on with a slew of product launch and also by beefing up its distribution network.
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Addressing a press conference here on Wednesday, Krishna Prasad Tripuraneni, Chairman, said Neycer had managed to post a net profit of Rs.3 crore within 15 months of the approval of the revival scheme by the BIFR. The company, he said, would end the current financial year with a top line of Rs. 32 crore and a profit of over Rs.10 crore (including the profit arising out of sale of its tile unit in Pondicherry). He was confident that sales could scale Rs.60 crore next year and reach Rs. 100 crore the following year.
Mr. Tripuraneni said the Spartek Group had invested around Rs.28 crore into Neycer to set up a modern fuel saving kiln that would save up 50 per cent of fuel cost and a modern drying and casting system. The current expansion would take the capacity from 5,000 tonnes to 12,500 tonnes.
The expansion would be completed by April this year, he added. He also informed presspersons that Neycer had launched on Wednesday a line of 28 products under its premium catalogue. The company, he said, was also repositioning itself as a premium and upmarket player in the sanitary ware industry.
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The company had a total debt of Rs.24 crore before the BIFR package was approved. The debt worth Rs.18.2crore was taken over at a discount and subsequently converted into equity shares. As a consequence, the paid-up capital of the company too had risen to Rs.14.65 crore from Rs.10.15 crore.
This meant that debt worth Rs.18.2 crore, which was taken over at a discount, was converted into equity shares worth Rs. Rs.4.50 crore. According to Mr. Tripuraneni, the promoters hold over 50 per cent equity in the company.