Kamar Chemicals and Industries Limited was originally promoted as a
joint sector company by Mr. Syed Meeran and his father Mr. S H Syed
Yusuff in October 1983 along with Tamilnadu Industrial Development
Corporation (TIDCO) for the purpose of setting up a plant for
manufacture of 70 tonnes per day of Sulphuric Acid and 20 tonnes per
day of Oleum. After the initial teething problems the company has
been making consistent profits during the last five years. A dividend
of 20% has been declared during the last three years. During 1993, the
company went in for an expansion of Sulphuric Acid plant from 70
tonnes per day to 100 tonnes per day. The expanded plant was
commissioned in March
1994. An Alum plant of 20 tonnes per day capacity was also set up
with the above and was commissioned in September 1994.
PAST PERFORMANCE 1990-91 91-92 92-93 93-94 94-95
Capacity utilisation 102.9% 91.25% 87.62% 73.95% * 96.35%
Sales 478.79 447.13 363.01 286.44 339.18
Profit bef.depn.int.& tax 134.55 93.36 63.73 54.37 87.01
Interest 17.38 13.48 7.13 1.41 20.17
Depreciation 26.23 29.72 11.76 7.08 11.91
Taxation - - - -
P A T 90.94 50.16 44.84 45.88 54.93
Equity 79.35 79.49 80.48 80.54 81.00
EPS 11.46 6.31 5.57 5.70 10.17 **
*1. The plant was shut down for 2.5 months to carry out the expansion
of sulphuric acid plant in 1993-94. Excluding the shutdown period the
capacity utilisation for 1993-94 works out to 85.62 %
2. Sulphur is the only raw material for both Sulphuric Acid and
Oleum. The output prices are linked to the price of sulphur.
Therefore to a large extent, the fluctuations in turnover can, be
related to the fluctuations in the international price of sulphur.
The per unit cost of Sulphur reduced by 18% for 1992-93 as compared
to 1991-92 and the per unit realisation of Sulphuric Acid and Oleum
reduced by 17% and 22% respectively over the corresponding periods.
reflected in the change in sales turnover.
3. The operations for 1994-95 has been on the expanded capacities
without any consequent increase in overheads, resulting in better
profit margins. There has been a process improvement also
contributing to better capacity utilisation levels.
The increase in margins in 1994-95 was also due to commissioning of
the Alum plant. The Alum plant was commissioned in September 1994.