The Andhra Pradesh-based TVG group company is now increasing its authorised capital to Rs 55 crore from the exiting Rs 37.50 crore. The company will seek the shareholder approval at its forthcoming extra-ordinary general meeting to be held on February 17, 1999.

The authorised capital of Rs 55 crore will be divided into 15 lakh preference shares of Rs 100 each aggregating to Rs 15 crore and four crore equity shares of Rs 10 each, aggregating Rs 40 crore.

The company has proposed to avail the financial assistance to the tune of Rs 10 crore from IDBI through a non-convertible debenture issue. For availing the money through NCDs, the company has to create a mortgage in favour of IDBI and it is also seeking the shareholders' nod for thesame at the EGM.Recently, the company entered toiletries business by launching its first premium soap `Royal Saffron Sandal Soap' as part of a forward integration. The group has so far invested about Rs 50 crore in the toiletries business and created an installed capacity of 2800 tonnes of soaps per month, according to company sources.

The company also plans to expand the product mix by adding popular product line such as lime, baby soape, etc. It also proposes to enter the areas of talcum powder and agarbathis shortly. On power generation front, SRAAC has proposed to set up a 35 mw power plant at Bellary in Karnataka and has already entered an agreement to purchase plant and equipment from MAN B&W Diesel AG, Germany in order to receive financial assistance from BfG Bank AG, Germany under IFCI loan agreements.

In order to satisfy the precondition for availing IFCI's assistance amounting to Rs 26.91 crore, SRAAC has to create an exclusive first charge on the fixed assets at Bellary plant, while the secondcharge goes in favour of BfG Bank, Germany. The company is now seeking the shareholders' approval in this regard also.

The Rs 300-crore diversified TVG group is engaged in the fields of Chemicals, Petrochemicals, Power Generation, Finance, Bulk drugs, Aquafoods and floriculture.