Golkonda Aluminium Extrusions Ltd Share Price

(513309)

Pennar Profiles PPL, a part of the Pennar Group based in Hyderabad, is a manufacturer of aluminium extrusions largely used in architecture (70%) and general industrial customers (30%). This company has reputed clients such as Eureka Forbes, Kirloskar, Gujarat Vacuum Coaters, and it exports 25% of its production to the UK and Germany with a tie-up with Metallgesellschaft Germany. With a cost of Rs 4.50 crore, PPL increased its production from 350 tonnes per annum to 600 tonnes per month and it also manufactures irrigation sprinkler systems. In 1995-96, the company completed modernisation and expansion which led to the installation of a 900-tonne extrusion press and an increased capacity of connected handling equipment from 350 to 500 tonnes per month. In 1997, the company received ISO 9002 certification from KPMG Peat Marwick LLP USA. However, due to incurred losses in 1998-99, the company declared itself as "sick" and IFCI was appointed its operating agency. O. S. Metallhandel GmbH, a German company active in aluminium trade, sought to revive the company and offered to take up exports of aluminium extrusions, upto 400 tonnes per month. A rehabilitation scheme prepared by IFCI and accepted by the board was then submitted to BIFR and it recommends waiver of entire outstanding interest dues to Financial Institutions and Banks, one-time settlement of dues to FIs and Banks amounting to Rs 164 million, reduction in equity share capital, and part conversion of loan into equity. OSMG has also offered Rs 59.8 million investment, out of which Rs 32.2 million will be towards equity.

Chairperson Name: Pradeep Kumar Jain