‘Chand Chhap’ returns

The tycoon can now thank a Corporate Debt Restructing (CDR) package, which has given him an ‘extra funding’ of Rs 62 crore from a consortium of banks, for his being able to reopen the plant, after so long. Goenka has also pumped Rs 15 crore into the plant and add Rs 10 more to pay off old dues, as part of the conditions of the CDR. However, even though the unit will begin production of its fertilisers from June-July this year, the tycoon will continue his battle against the government in the Supreme Court over the RPS issue. But a good monsoon in UP and a supportive state government may help make this a winning decision yet.

Set for the future

Gautam Thapar has been making plans to acquire pulp and paper capacities in South-East Asia for many months now. Negotiations have been on and in all probability the tycoon will soon acquire pulp and paper capacities in Indonesia and Malaysia. This, he will use to double Ballarpur Industries Ltd (BILT)’s total capacity to 8.5 lakh tonnes over the next five years. Even a diversification plan for BILT has crossed the tycoon’s mind. In fact, he has on a number of occasions expressed his desire to enter the non-paper-based products sector. But until that happens its paper, he is keeping himself engrossed with. Entering the tissue paper sector is part of the plan, which Thapar will begin by outsourcing tissue paper supplies. Eventually he will set up his very own manufacturing line for which he will invest Rs 25 crore over the next five years.

The tycoon has also brought about a gradual change in his manufacturing plants over the last four years, where they will all manufacture one product alone. The Yamunanagar plant will concentrate on speciality paper products, and will be used as a training, R&D hub for BILT. The Ashti (Maharashtra) unit will concentrate on writing and printing copier paper alone. The Ballarpur (Maharashtra) unit will make uncoated paper while the Bhigwan unit will continue with coated paper. The tycoon’s Sewa (Orissa) unit will begin the manufacture of copier paper. Thapar is thus well prepared for the growth he believes will eventually come.

Sweet success

Shishir Bajaj’s Hindusthan Sugar claims it has taken over Saraogi’s Balrampur Chini Mills to emerge as the country’s leading sugar manufacturer. His company has moved four places to grab the top slot, they insist.

Spurred on by his Carnegie Mellon graduate son, Kushagra, Shishir has got the Kinnouni plant functional, to take his production to 4.03 lakh tonnes for the season. Last year, he had just Golagokarannath and Palia Kalan plants to rely on.

Speculation had been that the Bajajs were eyeing the UP State Sugar Corporation, which had been put on the block by the Uttar Pradesh government. The corporation has 24 mills with a combined capacity of 35,000 tonnes. If Bajaj Hindusthan were eventually able to bag all these mills, it would e counted amongst the biggest in the world.

Bajaj’s ambitious plans has kept competition on tenterhooks. The way Bajaj has been operating for the last few months has already been a matter of worry for his competition, like the long established sugar barons of west Uttar Pradesh, including Sawhneys, Shrirams and Birlas. With the political clout, the tycoon duo have behind them, this plan may merit watching.

dilipcherian@hotmail.com