Bio Green Industries achieves turn around

Bio Green Industries Ltd has announced that during the financial year 2007-08 has achieved a remarkable turnaround with series of revenue strengthening measures taken by its Management.

During the year the Company has successfully concluded preferential placement of Rs 540 lakhs to various investors. The Company utilized the preferential placement proceeds in acquiring substantial stake in M/s. Shivsagar Paper & Chemicals Ltd. Thus M/s. Shivsagar Paper & Chemicals Ltd has become a subsidiary of the Company.

M/s. Shivsagar Paper & Chemicals Ltd with its facilities located at Akkurada Village, which is in 120 KM distance from Visakhapatnam has 40 TPD (Tons Per Day) capacities of Kraft Paper Production and 40 TPD capacities of Duplex Board Facilities. The Company's factory building and land are spread across 6.5 acres of land.

The Kraft Paper produced by the Company is of 70 GSM to 170 GSM quality range and used to make corrugated boxes, paper tubes, cones, match boxes, shoe boxes and cosmetic containers.

The Duplex Board has 150 to 600 GSM range and used for Gift Boxes, Shoes Boxes, Product and Food Packaging and Flat Files.

The Company possesses free-hold land of 50 acres in which currently the Company is undertaking plantation activities including bio-diesel.

The Company also possesses Mineral Water Plant facilities with 60 liter per minute capacity ranging from 1/2 liter to 2 liters. With its captive online filling and labeling facilities it's located in one acres of land adjacent to the paper manufacturing facilities.

The Company has recently paid under One Time Settlement it's long pending dues and cleared all the debts to various institutions and other lenders.

The Company has paid on behalf of its subsidiary Company M/s. Shivsagar Paper & Chemicals Ltd, Rs 300 lakhs to Stressed Asset Stabilization Fund (SASF) of IDBI and settled all of its dues and has become debt free. The Company also has paid Rs 95 lakhs to Stressed Asset Management Branch of State Bank of India and settled all its dues under OTS. The Company has paid Rs 4.75 lakhs to Andhra Bank and settled all of its pending dues Under OTS. Besides the Company also has cleared liabilities with APIDC by paying Rs 5.7 lakhs and on account of various other liabilities the Company has paid to the extent of additional Rs 25 lakhs and cleaned up the books of its subsidiary M/s. Shivsagar Paper & Chemicals Ltd and made it debt free. The Company now intends to Amalgamate / Merge the residual stake or by doing a rights issue and make Shivsagar Paper & Chemicals Ltd as 100% wholly owned subsidiary Company and operate under single entity of the Company. As Shivsagar Paper & Chemicals Ltd's substantial stake is owned by the Company, it qualifies for financial consolidation with the parent Company.

During the year 2006-07, the Company has strengthened its board with various professionals from the industry, legal and financial back ground. The Company's board of directors consists of eminent personalities namely Mr. Amrut P Shah, Mr. L V Ramnarayan, Mr. Aravind Shah, Mr. K Rama Krishna Reddy, Mr. J Dilip and Mr. G K Mishra. With varied backgrounds the directors are acting as the guiding force in the restructuring of the Company. The Company's plant and productions operations are looked after by Mr. V Jagdish.

With the restructuring happening and the plant commencing its production during the financial year 2007-08, the Company is poised to achieve a first time TURN AROUND and expected to show a Turnaround Performance commensurating stabilization of its production facilities to the extent of Rs 25 crores, with an expected bottom-line ranging between 10% to 15%.

Source : Equity Bulls

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