Jhaveri Flexo Board recommends Dividend
Jhaveri Flexo India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 19, 2008, inter alia, has considered the following matters:
1. Recommended Dividend @ 18% for the financial Year ended on March 31, 2008 (i.e. Rs 0.90 per equity share having face value of Rs 5/- each) on the Equity Capital. The dividend shall be paid to the equity shareholders subject to the approval of shareholders in the ensuing Annual General Meeting.
2. The Company had filed DRHP with the SEBI on November 01, 2007 for further public issue of equity shares for financing its expansion plan and diluting the promoters holding. The SEBI has given their final observation to the DRHP vide its letter dated February 20, 2008 but seeing the adverse conditions of primary and secondary capital markets, and low investor confidence in general the board of directors have decided to drop the proposed further public issue of equity shares. The board is weighing various options to fund the expansion and dilute the promoters holding.
3. Towards the expansion activities a new State of Art 5 - Layer cast film line first of its kind in the country with a installed capacity of 7500 MT for production of barrier and CPP films has been successfully commissioned in the new factory building at Luhari, Silvassa. The plant should be fully operational and making commercial run during the 1st Quarter of FY08-09. The Company will be the 1st player to produce 5 layer barrier cast film in India, therefore lots of seed marketing arid concept selling has to be done, the fruit of which the Company shall be in a position to enjoy in due course of time.
4. Apart from the said new unit the Company is in process to increase the capacities at its existing factories i.e. at Farola in Aurangabad and Dapada in Silvassa and for said expansion most equipments are already ordered and some are in the process of selection and finalization. A 3 Layer Co-extrusion film plant for stretch film manufacturing under installation at Aurangabad and a new imported solvent less laminator and other equipments has been installed recently at Dapada factory at Silvassa to meet the mismatch in the capacity of printing and lamination of the Company.
The production of new state-of-art coating line at Aurangabad has begun recently and getting good response from the customers. Proposed New Cast PVC Film line, being the state of the art tailor made equipment will put the Company at par with the best manufacturers of PVC Cling film in the World. Total impact of the various expansion activities undertaken shall be reflecting in the company’s working for the financial year 2009-10.
Tags: Jhaveri Flexo