FACT-RCF Building Products Ltd. (FRBL), the joint venture between public sector FACT and Rashtriya Chemicals and Fertilizers, is hopeful that the outstanding issue of debt repayment to a private bank will be resolved for a new year of profitable operations.
FRBL is a manufacturer of gypsum-based building products like load bearing panels, plaster, and putty, which are in great demand in the building material market.
The private bank, which extended a loan of over ₹22 crore for the FACT-RCF project, has secured a court order to take possession of the FRBL unit in Kochi in view of the outstanding debt. The FRBL unit operates out of the Ambalamugal premises of FACT, and production at the unit has been halted since Christmas day.
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Following the production halt, the management has directed around 90 workers not to report for duty. But FRBL sources said the issue could be resolved for the company to resume operations after settling its dues.
Managing director C.P. Dinesh said FRBL had availed a loan of over ₹22 crore from the bank. The company had paid up ₹10.5 crore and had made arrangements for further payment. The company has been in good health and has no outstanding arrears in terms of salaries or statutory payments.
Mr. Dinesh said the company had been doing well and earned an operating profit of ₹50 lakh in the last financial year. It has sold around 40 lakh sft of wall panels during its operations over the years. FRBL also has a project consultancy vertical which continues to operate.
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FRBL was set up with Australian technology support and has successfully leveraged the growing demand for economically viable and sustainable alternatives to conventional building methods and materials. The materials can be deployed both in large-scale and individual residential projects.