Mumbai, July 12: The Indian Petrochemicals Corporation (IPCL) is aggressively cashing in on the lower prices in the Gulf countries to source its raw materials. The sourcing, which began in March this year, is aimed at optimising costs. ``We are increasingly sourcing our raw materials from the Gulf as prices (there) are low when compared with the local market.Optimisation of cost through maximisation of imports will be our strategy this financial year, and the emphasis will be on Gulf countries,'' an official said. For instance, the price of naphtha, a key raw material, rules at Rs 7,500 per metric tonne in the Gulf compared with Rs 10,000 per metric tonne in the local market. The company was earlier sourcing its raw-material requirements from local players like Indian Oil Corporation.
The company has conducted a study to effectively transport the imported goods during the monsoon season. ``Monsoons have made transport of goods difficult last year as the sea is rough in Dahej. The study identfied the kindof ships that can safely transport goods even during monsoons,'' the official said.
The cyclone that ravaged much of Gujarat last month did not have any negative impact on the company as its main jetty Dahej was unaffected. The company, which reported a decline in net profit in 1997-98, is expected to do a repeat in the first quarter of the current financial year, according to analysts.
The company had earlier approached the Vadodara Stock Exchange seeking exemption from having to announce its quarterly results. It has now moved Sebi with its exemption request after the Vadodara exchange rejected its plea.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
