Beta Naphthol Ltd - Stock Valuation and Financial Performance

Beta Naphthol was incorporated as a private limited company on October 30, 1982 and was subsequently converted into a public limited company on November 27, 1992. The registered office is located at Indore, Madhya Pradesh. It is engaged in manufacture of dye intermediates and dyestuff. The company has its manufacturing units located in Shajapur in Madhya Pradesh and Vapi in Gujarat.

History of the company:

• Beta Napthol Limited  (BNL) was incorporated on October 30, 1982 as a private limited company and became a deemed public company by virtue of provisions of Section 43A (1A) of the Companies Act, 1956 on July 1, 1989. BNL was subsequently converted into a public limited company on November 27, 1991. The main object behind the incorporation of the company was to establish the manufacturing facility for Beta Naphthol and other dye Intermediates. BNL has its registered office at 403-405, Vikram Complex, Sapna-Sangeeta Road, Indore 452 001, Madhya Pradesh.
• BNL is an existing, profit making, and dividend paying company listed on stock exchanges at Bombay, Indore Ahmedabad and Jaipur. BNL is engaged in the manufacture of Beta Naphthol and other dye Intermediates. It is also manufacturing Beta-Mix, a hardner which is used in the hardening of cement and tiles.
• Immediately after incorporation, BNL took up the implementation of the project for manufacture of Beta Naphthol at Maksi (Madhya Pradesh) with an installed capacity of 600 MT per annum. The plant was commissioned in 1983. The capacity of Beta Naphthol plant at Maksi was subsequently increased to 1800 MT in 1989. The project was financially assisted by Madhya Pradesh Audhyogik Vikas Nigam Ltd (MPAVN) and Madhya Pradesh Finance Corporation (MPFC).
• In 1990, BNL undertook another expansion programme by setting up a new unit at Vapi for the manufacture of 1800 MT of Beta Naphthol with the financial assistance from ICICI, IDBI and IFCI (ICICI lead). The plant at Vapi went on stream in 1991.
• During 1992-93, the company undertook an expansion of the existing manufacturing facilities for Beta Naphthol at Vapi from 1800 MT per annum to 2400 MT per annum and converting part of Beta Naphthol plant into the manufacture of 600 MT of Resorcinol, a rubber chemical. The know-how for the manufacture of Resorcinol was developed by the company in-house. The company could not commence commercial production of Resorcinol as the required yield and purity levels were not achieved during the trial runs. However, the company's efforts to improve yield and purity levels of Resorcinol on a commercial scale are still on.
•  Since the Resorcinol facilities could not be fully utilized, the company converted a part of the same into a Beta Mix plant by adding balancing equipments and modifying the existing equipments The Beta Mix plant went on stream in September 1994. Beta-Mix is used in the hardening of cement and tiles. BNL is the only known manufacturer of Beta-Mix in India.
• BNL is also engaged in overseas trading of dye intermediates and various other products. For this purpose, it has a merchant exports division at Bombay.
• BNL has recently acquired a dye intermediates plant at Vapi, which manufactures Gamma Acid at a cost of Rs 450 lakh. This acquisition is expected to provide operational synergy with the existing business of the company.
• BNL has a Research & Development and Product Application Centre at Maksi. BNL's research team has developed the technical knowhow for Beta Naphthol and Beta Mix in-house. The thrust on R&D activities has helped BNL emerge as one of the well established manufacturers of Dye Intermediates In the country.

The company has been suspended from the BSE on account of non-compliance with listing agreement clauses and the company was wounded up on January 22, 2003.