Nocil plans Rs 1,000 cr turnover by ’12

MUMBAI: National Organic Chemical Industries Ltd (Nocil) is looking to increase its turnover to Rs 1,000 crore by 2012 and double its market share from 4% to 8% by this time, the company has said.

Driving this growth would be its rubber chemicals plant at Dahej, which is scheduled for completion by 2011, said Hrishikesh Mafatlal, the chairman of Nocil.

The project, which will be completed in two phases, will see an investment of Rs 300 crore.

Mafatlal said the company would invest Rs 175 crore in phase I, which would be completed by the end of 2009. Another Rs 125 crore has been earmarked for phase II, scheduled for completion by 2011.

Announcing Nocil's first quarter results, Mafatlal said its turnover stood at Rs 128 crore, up 74% from Rs 74 crore in the same quarter last fiscal. Profit after tax (PAT) stood at Rs 11.64 crore, a five-fold increase over the Rs 2.03 crore in the first quarter of FY07.

"All input and fuel costs have gone up sharply but we were fortunate to be able to pass on the costs to the consumers," Mafatlal said. He said raw material costs had risen considerably and selling price too was under pressure. Margins were under pressure due to the rupee's appreciation, he said. High crude oil prices had a cascading effect on raw material costs, but the company hopes to minimise the cost impact and increase production by 2012, he added.

The company posted annual sales of Rs 359 crore in FY08, up from Rs 304 crore in FY07. However, net profit for fiscal 2007-08 almost halved to Rs 11 crore from Rs 23 crore in fiscal 2006-07.

shubhashish@dnaindia.net