Mumbai, Nov 15 : Paints manufacturer Snowcem India Ltd is planning a technical tie-up with a German company for the purpose of exterior and interior paint businesses. The company is also planning to acquire a precious metal fabrication and atomisation plant for a new line of business.The company has informed the Bombay Stock Exchange that its board of directors will meet on Wednesday, November 22 to take the above agendas into consideration.It has also informed that the company plans to increase its authorised capital from Rs 15 crore to Rs 20 crore. The board will also consider a preferential issue of capital under the provisions of Section 81 of the Companies Act 1956, by way of equity shares not exceeding 50 lakh of Rs 10 each.
The company has informed that it will nominate directors including alternate directors in Snowcem Products Sri Lanka Pvt Ltd. Snowcem India had entered into an agreement to acquire 50 per cent stake in a Sri Lankan paint manufacturing company. Snowcem India provides technical assistance and also exports raw material to Snowcem Products Sri Lanka Pvt Ltd.
The share price of Snowcem India closed at Rs 52 on the Bombay Stock Exchange compared to Rs 52.10 as its previous close.Snowcem India registered a 76.4 per cent increase in net profit to Rs 15.01 crore for the year 1999-2000, as against Rs 8.5 crore in the corresponding period last year. During the period, net sales rose by 36 per cent to Rs 151.32 crore from Rs 111.2 crore in the previous year.
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