New Delhi, June 9 : Shalimar Paints Ltd, the country’s oldest paint manufacturer, was aiming for a turnaround in the current fiscal after passing through financial turbulence in the last few years, a top company official said.
The company had incurred huge financial losses owing to multiple reasons, including incidents of fire in Howrah and Nashik factories in 2014 and 2016 respectively, he said.
It had impacted business operations leading to lower production and sales, lower margins, higher working capital cycle and reduced engagement with channel partners.
“We will be back in profit for the full year in the current fiscal. We are aiming at Rs 450 crore topline in 2019 -20,” Shalimar Paints vice-chairman Ashok Kr Gupta told PTI.
He, however did not quantify the profits the management was aiming at.
Asked about the strategy and drivers for growth, he said, “We have to be in profit for survival by working in all directions.”
With the company being able to overcome working capital constraints after recently raising Rs 200 crore through a rights issue, it will now be focusing “all-around” growth, he said.
The company is planning for in-house production of alkyd resins, an important ingredient in synthetic paints, to cut down on costs. The company has already established a remarkable jump of 48 percent in revenues in the March 2019 quarter over the corresponding period in FY18.
“We are doing Rs 30 crore revenue per month and we will increase it to Rs 40 crore,” Gupta said.
Shalimar Paints has three operational manufacturing plants in Chennai, Sikandrabad and Nashik with a total capacity of 73,560 kilo litres.
