Century Plyboards merges with Shyam Century Ferrous Alloy
Century Plyboards (I) Ltd has declared its merger with Shyam Century Ferrous Alloy after getting clearance from both the Kolkata and Guwahati High Courts.
The merger will be effective from April 2005, and will increase Century Plyboards’ capital holding from Rs 12.24 crore to Rs 19.76 crore.
The exchange ratio of shares would be three Century Plyboards shares for every four shares of Shyam Century Ferrous Alloy. Century Plyboards Managing Director Mr Sajjan Bhajanka said that the company was consolidating through mergers and acquisitions, aiming at achieving a combined turnover of about Rs 1,000 crore by 2007-08. The group’s projected turnover is Rs 700 crore in the current fiscal and about Rs 400 crore in 2005-06.
Following the merger, Cement Manufacturing Company Ltd, a subsidiary of Shyam Century Ferrous Alloy, will become a subsidiary of Century Plyboards with a holding of about 76 per cent equity in Shyam Century Ferrous Alloy. Megha Technical & Engineers Pvt Ltd, a subsidiary of Cement Manufacturing, which controls 99.56 per cent equity, will also become a subsidiary of Century Plyboards.
Century Plyboards has in the meantime diversified into shipping by forming a new company called Century Star Shipping with 51 per cent holding in the company. Mr Bhajanka said the shipping company had its own tug and barge, and this has benefited the existing operations of Century Plyboards’ jetty at Falta.
He said Century Plyboards was also in the process of acquiring a controlling interest in a plywood company — Auro Sundaram Ply & Doors Pvt Ltd in Uttaranchal, while there was a proposal to merge Sharon Veneers Pvt Ltd and Century Panels Pvt Ltd. The proposal has been approved for due diligence.
Shyam Century Ferrous Alloy operates its ferrous alloys plant at Byrnihat in Meghalaya with two units of MVA submerged electric arc furnaces. It has also installed a 13.8-MW captive power plant. On the other hand, Cement Manufacturing manufactures cement under the brand name "Star" and has a unit at Lumshnong in the Jantia Hills of Meghalaya.
Mr Bhajanka said the group plans new projects in Himachal Pradesh, Punjab, Meghalaya, Bihar and Jharkhand.