Haldia’s pot is boiling not only because of land acquisition problem close at Nandigram across the river Haldi, but there is at least one more reason. It’s about controlling Haldia Petrochemicals Limited (HPL), the erstwhile torchbearer of state government’s industrial initiative. HPL’s present stakeholder includes Purnendu Chatterjee’s TCG that has 30.70% control of the company (more).
To enable HPL expand its capacity, it has to first repay mounting debts mainly to IDBI-led consortium before it can enter the capital market by offering shares to the public. For that the government wants to rope in the public sector giant, IOC, which in its turn prefers controlling stake in HPL so that it can have a board of its choice.
That means the government sells its stake to IOC, which TCG has objected to. The feud reached Company Law Board (CLB), and after prolonged hearing the CLB apparently ruled that TCG indeed has a valid point for its objection.
In spite, however, of the imbroglio it is in, HPL is performing exceedingly well. It is likely to post gross sales of Rs.8300 crore this financial year that will translate to something about Rs.530 crore in profit after tax. This year’s turnover is a 25% jump on previous year’s performance.
Bereft of large-scale expansion due to inability to tap the market as yet, HPL nevertheless intends capacity increase in the interim with a project worth Rs.675 crore. This is necessary because it is already operating at 100% capacity and therefore cannot take advantage of upswing in business unless this new project takes shape.
What comes clear in all this is that if a company is well-managed, it can do wonders even if there is feud at the high echelons, provided the feuding parties do not intervene at day-to-day operations. Here is wishing HPL all the success.
HPL at night – stellar performance [Picture source]
Related reading: Haldia hurrah, despite tussle
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