NIRLON KNOWLEDGE PARK
OPERATIONS:
(a) Real Estate Division
(a) Real Estate Division
i) Development of Phase 1 of the Nirlon Knowledge Park - Goregaon
After a detailed evaluation, the Company concluded that the development of an Information Technology (IT) Park, as per the Government of Maharashtra's IT Policy, will allow the Company to optimize the value of its real estate at Goregaon. Accordingly, the Company commenced a detailed planning, budgeting and marketing exercise for the development of this IT Park. This included the appointment of architects, project management consultants, engineering consultants, etc.
During this period, the Company also confirmed its financing requirement for the project, and obtained sanctions from the lenders in this regard. After the appointment of the required contractor(s) in April 2007 and obtaining the required permissions, construction commenced in May 2007 as scheduled.
Presently, the Company intends to offer constructed premises in the IT Park on a leave and license basis to potential users.
ii) Leave and License activity
Parallel to the planning for development of the Nirlon Knowledge Park as described in (i) above, the Company continued to rent on leave and license basis approx. 5.39 lakh sq. ft. built up area at Goregaon and 0.96 lakh sq. ft. built up area at Tarapur to various corporate clients as on March 31, 2007.
ii) Leave and License activity
Parallel to the planning for development of the Nirlon Knowledge Park as described in (i) above, the Company continued to rent on leave and license basis approx. 5.39 lakh sq. ft. built up area at Goregaon and 0.96 lakh sq. ft. built up area at Tarapur to various corporate clients as on March 31, 2007.
The income from the leave and license activity was Rs. 18.51 crores in 2005-06 (15 months). The income for the period under review (9 months) was Rs.12.69 crores.
(b) Belting Division - Roha
Your Company continues to hold 26% Equity in its Conveyor Belting Joint Venture Company `Sempertrans Nirlon Pvt. Ltd.' which was formed in November 2000 with Semperit A.G., an Austrian Industrial Rubber Products Multinational.
This Joint Venture Company further improved its performance and its profitability in the financial year 2006-07.
Your Company continues to hold 26% Equity in its Conveyor Belting Joint Venture Company `Sempertrans Nirlon Pvt. Ltd.' which was formed in November 2000 with Semperit A.G., an Austrian Industrial Rubber Products Multinational.
This Joint Venture Company further improved its performance and its profitability in the financial year 2006-07.
During the period under review, the performance of the V-Belt Division also improved.
This improvement has been achieved as a result of the full basic range of V-Belts now being made available to customers, across an increased market.
This improvement has been achieved as a result of the full basic range of V-Belts now being made available to customers, across an increased market.
(c) Nylon Tyrecord Division - Tarapur
Dipping of Tyrecord Fabric and Industrial Fabric, as well as the manufacture/job work of griege tyrecord and industrial fabric continued at the Company's Tarapur location.
FUTURE OUTLOOK:
(a) Real Estate Division
(i) Development of Phase 1 of the Nirlon Knowledge Park - Goregaon
After appointment of the contractors in April 2007, and obtaining necessary permissions, the construction of Phase 1 of the Nirlon Knowledge Park commenced in May 2007. Phase 1 is expected to be ready for internal fit outs in the last quarter of the calendar year 2008. Income from Phase 1 is expected to begin from the first quarter of the calendar year 2009 (last quarter of the financial year 2008-09).
Marketing for licensing of floor areas in Phase 1 of this development is currently in progress, and on schedule. Subsequent phases of this development will commence depending on the response received by the Company for its Phase 1 development from potential users.
After appointment of the contractors in April 2007, and obtaining necessary permissions, the construction of Phase 1 of the Nirlon Knowledge Park commenced in May 2007. Phase 1 is expected to be ready for internal fit outs in the last quarter of the calendar year 2008. Income from Phase 1 is expected to begin from the first quarter of the calendar year 2009 (last quarter of the financial year 2008-09).
Marketing for licensing of floor areas in Phase 1 of this development is currently in progress, and on schedule. Subsequent phases of this development will commence depending on the response received by the Company for its Phase 1 development from potential users.
(ii) Leave and License activity
The Company expects to continue to receive its regular income from the areas already given on leave and license basis to various corporates in Goregaon and Tarapur during the financial year 2007-08.
However, some reductions may take place in the existing areas given on leave and license, which may be necessary as per the demolition and construction schedules of the Company's IT Park in Goregaon. This may affect the Company's income in the financial year 2007-08.
The Company expects to continue to receive its regular income from the areas already given on leave and license basis to various corporates in Goregaon and Tarapur during the financial year 2007-08.
However, some reductions may take place in the existing areas given on leave and license, which may be necessary as per the demolition and construction schedules of the Company's IT Park in Goregaon. This may affect the Company's income in the financial year 2007-08.
(b) Belting Division - Roha
The Company's Conveyor Belting Joint Venture, i.e. `Sempertrans Nirlon Pvt. Ltd.', has made substantial progress in expanding its production capacities during the financial year 2006-07. This expansion is expected to be substantially completed by the end of the financial year 2007-08, and the Joint Venture Company is expected to benefit from the extra installed capacities during the financial year 2008-09.
The capacity utilization and quality of the Company's V-Belts is expected to continue to improve in the financial year 2007-08. Though the Division has not become profitable during the financial year 2006-07 as planned, it is now close to a breakeven level, and is expected to become profitable during the financial year 2007-08.
The capacity utilization and quality of the Company's V-Belts is expected to continue to improve in the financial year 2007-08. Though the Division has not become profitable during the financial year 2006-07 as planned, it is now close to a breakeven level, and is expected to become profitable during the financial year 2007-08.
(c) Nylon Tyrecord Division - Tarapur
The Company has evaluated the competitiveness of its Dipping Unit at Tarapur, and has identified areas which require modifications to make this Unit competitive for the medium and long term. The implementation of these modifications will be introduced in a phased manner in the financial year 2007-08, and are scheduled to be completed by the financial year 2008-09.
BIFR STATUS
Pursuant to the application for deregistration made by the Company to the Hon'ble BIFR on September 7, 2006, the BIFR has passed an order dated October 6, 2006 deregistering the Company from the list of Sick Industries as defined under Sick Industrial Companies (Special Provisions) Act (SICA), 1985.
Pursuant to the application for deregistration made by the Company to the Hon'ble BIFR on September 7, 2006, the BIFR has passed an order dated October 6, 2006 deregistering the Company from the list of Sick Industries as defined under Sick Industrial Companies (Special Provisions) Act (SICA), 1985.
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