PALCO Ltd Company Summary

PALCO Ltd Summary

Incorporated in Sep.89, Pennar Aluminium was promoted by Nrupendra Rao and his associates, Pennar Steels, Pennar Paterson Securities and the State Industrial and Investment Corporation of Maharashtra. The company manufactures aluminium sheet rolling, wire drawing and alloys. Its product-mix includes aluminium rolled coils, sheets, strips and all aluminium alloy conductors (AAACs).Aluminium coils and sheets are used in packaging, fan blades, refrigerators, etc, and as foils in bottle closures, collapsible tubes, cans, etc. AAACs are used in power transmission. The company has a collaboration with Pechiney Aluminium Engineering, France, for technical know-how to manufacture flat products.Its products are exported to the US, Germany, Syria and Bangladesh. It has an export tie-up with MG-NE Produkthandel, Germany, for 40% of its production. It was accorded the Export House status in its very first year of operations. In 1994-95, the conductor division was awarded the ISO 9002 certificate by RWTUV, Germany.Pennar Aluminium plans to expand the capacity of its strip plant to 45,000 tpa and that of the conductor division to 10,000 tpa. In 1995-96, its Strip Plant was awarded the ISO 9002 certificate by RWTUV, Germany.During 1996-97, the company has extended its year by six months, it has increased its installed capacity of Conductors to 14400 TPA. The company won the regional export award announced by the engineering export council for outstanding export performance for the year 1995-96.The year under review i.e. 1998-99, the company incurred losses due to continued financial difficulties and hence, BIFR directed IDBI, the operating agency, to invite global bids for takeover / acquisition of the company. Accordingly, advertisements were released in newspapers which have recieved some responses. IDBI, however, is yet to take a decision for submitting their draft rehabilitation scheme for revival. The operations at its conductor plant continued to be suspended due to lack of bank guarantees and letters of credit limites from banks.