Winsome Yarns

Chendur Forge Exports INCORPORATED in 1992 and promoted by Chendur Forgings (P), Chendur Forge Exports (CFE) notched a turnover of Rs 10 crore in 1992-93 with exports touching Rs 3 crore. CFE manufactures high precision forgings from carbon steel, alloy steel, stainless steel, aluminium bronze, etc These products are supplied directly by the company or through its associates to leading OEM's and auto ancillaries such as Ashok Leyland, Telco, Rane Brakes India and Mahindra and Mahindra as well as two engineering companies such as Larsen and Toubro and BHEL. The company has taken over the promoter company's existing operations with an installed capacity of 5,000 tpa of steel forgings and is setting up a Rs 3.88 crore steel forgings EOU at Gummidipoondi near Madras with a capacity of 3,000 tpa. The EOU, which is in an advanced stage of implementation, is to commence commercial production in November this year. The forgings industry has been classified as an 'extreme focus industry for exports' by the government. The company enjoys various advantages such as acquisition of existing facilities of promoter company, low gestation period for EOU and backward area and sales tax and other related benefits. The EOU is to be financed through equity of Rs 2.23 crore, term loans of Rs 1.5 crore and state government subsidy of Rs 15 lakh. To part finance the project, the company is entering the capital market with a public issue of 18,50,000 equity shares of Rs 10 each at par on September 15. SB1 Capital Markets and State Bank of Mysore are to lead manage the issue. State Bank of India, which has appraised the project, anticipates a net profit of Rs 48 lakh in 1993-94, Rs 124 lakh in 1994-95 and Rs 165 lakh in 1995-96 on an equity base of Rs 420 lakh. The EPS for the respective years works out to