Sitara Chemical Industries
Introduction
SCIL was incorporated in 1981 and began producing caustic soda in 1985, initially at a rate of 30 metric tones Caustic a day. The plant's capacity was gradually increased over years to current level of 545 metric tones a day. In addition, various by-products facilities have been added and expanded from time to time to cope with growing demand.
Company entered into Textile Spinning Business in 1995. Its specialty chemicals and export division was established in 2001 and agri chemicals division in 2003.
Divisions
SCIL has basically five divisions namely;
AGRI DIVISION
SPECIALITY CHEMICAL
PVC DIVISION
SPECIALITY DIVISION
TEXTILE DIVISION
Major new projects
Chlorinated Paraffin Wax (CPW):
The company has successfully installed the CPW plant having capacity of 10mn tons per day. The plant will generate added sales and also will reduce the cost of neutralizing cost of chlorine gas used as an input of CPW.
PVC plant
The company is planning to setup the PVC plant with annual capacity of 60,000mn tons for which construction is on underway.
Financial performance
During FY08, net sales of the company registered an increase of 25% to PRs5.5bn as compared to PRs4.4bn in the previous year. Export sales also depicted considerable with growth of 19% to 63mn during the year. However, despite increasing input cost, the company's gross margin expanded by 4pps to 28%. Cost of sales showed relatively smaller increase due to economy of scale and efficient utilization of the resources. As the result, gross profit of the company increased by 43% to PRs1.56bn as against PRs1.08bn during FY07. The company's profit after tax increased significantly by 67% to PRs622mn (EPS PRs30.4) versus PRs373mn (EPS PRs18.2) in the preceding year. The company posted a decline of 5% in its profitability during 1HFY09 at PRs333mn as against PRs350mn in the comparable period of last year, though its top-line jumped by 18% to...