Page 14 - Plastics News November 2017

COMPANY NEWS

NCLT puts Nagarjuna Oil’s jinxed TN refinery project on the block

agarjuna Oil Corporation’s 6-million-tonnes-a-year anchor for the proposed PCPIR (Petroleum Chemicals and
Nrefinery is on the block, with the National Company Petrochemical Investment Region).
Law Tribunal-appointed Resolution Professional calling for It was the largest private sector investment in the State
Expressions of Interest from prospective investors. The and figured prominently in the Global Investors Meet 2015
refinery at Cuddalore, about 200 km from Chennai, was organised by the State government. The government had
scheduled to be commissioned in 2002 at an investment also proposed an incentive package.
of around Rs 3,500 crore. But owing to delays and cost
overruns, the estimates mounted to Rs 12,500-18,000 Tupperware closing French
crore, and the commissioning was pushed to 2017. But a
storm in December 2011 hit the project hard and it was plant due to overcapacity
stalled. A debt recast was attempted, with a consortium
17 public sector upperware Brands Corp. is in talks France to close
banks cutting Tits production site in Joué-lès-Tours, France, due
their losses. to overcapacity in Europe.
Th e y we re , The company announced that it was taking the measure
h ow e ve r, t o in the face of “significant industrial overcapacity” in
br ing in an Europe and the slowdown of its commercial activities
additional Rs in Central and Western Europe, particularly in France.
7,000 crore debt
as part of the
restructuring.
However, the
plan too fell through. The Hyderabad-based Nagarjuna
Oil Refinery, which is setting up the project, held a 46.78
per cent stake (77.62 crore shares) in Nagarjuna Oil
Corporation.

Other shareholders included TIDCO, a Tamil Nadu
government industry promotion agency, with 1.65 per cent
(2.74 crore shares); Trafigura 19.79 per cent (32.84 crore
shares); Tata Sons 12.70 per cent (21.07 crore shares); Tata The overcapacity, it explained, was also the result of
Petrodyne 12.11 per cent (20.08 crore shares); Cuddalore improvement in productivity. The site, which is one
Port Co 3.66 per cent (6.07 crore shares); and Udhe Gmbh of four European manufacturing sites — the three
3.31 per cent (5.48 crore shares). The NCLT-appointed RP others are in Belgium, Greece and Portugal — is run
has called for applicants to submit a proposal by October by Tupperware France SA through a network of 56
31. The applicants should have a minimum consolidated distributors, 1,500 employees and an independent
net worth of Rs 500 crore ($77 million) as of March 31, sales force of 27,000 sales people The company said
2017. its management is currently in talks with the works
The RP said that with funds infusion, the project can council and planned to complete the closure in March
be commissioned in two-three years after completing 2018. Tupperware Brands Corp. (TUP) reported a profit
the balance work. The plant is capable of meeting E-VI for its third quarter that rose compared to the same
norms with some additions. Statutory clearances are in period last year. The company said its bottom line rose
place, though some of them need to be renewed. This is to $52.7 million, or $1.03 per share. This was up from
$44.7 million, or $0.87 per share, in last year's third
a critical project for Tamil Nadu as the refinery was an
quarter.

Plastics News N ovember 2017 14