[T.S.R:17467] INEO-ABS (BSE INABS.BO), CY10 EPS Rs 40, Could Potentially Reach Rs 775

INEOS ABS (India)-part of INEOS Global group of companies forms a JV With BASF Germany

 

Listed under the symbol INABS.BO the corporate continues to contribute in enhancing ABS capacity globally. The promoter INEOS ABS Jersey Limited owns 83 per cent of the Rs 17.5 crore equity. There are virtually no large shareholders in the company beside the promoter. 

Structure and Developments 

INEOS and BASF recently announced that they have signed a letter of intent to form a 50/50 joint venture that is to include the INEOS ABS and styrene businesses, the INEOS NOVA polystyrene and styrene monomer businesses, and the BASF styrene, ABS and polystyrene businesses. This new business will be known as Styrolution and is forecasted to have sales of approximately 5bn per year. 

The deal, which is subject to regulatory approval and the agreement of the competition authorities, is expected to be completed in Q4 of 2011. When completed, the new company will be a world scale, globally competitive producer of styrene, ABS and polystyrene with leading positions in North America, Asia and Europe. 

Ongoing Expansions In India  

D

uring CY 2010 several steps have been taken as part of the CAPEX and debottlenecking to achieve ABS production capacity of 80,000 tpa. This capacity has become available from early 2011. 

Further plans are afoot to augment the ABS production capacity to 1,10,000 tpa for which we shall first be increasing the capacity of SAN from the present 60,000 tpa to 1,00,000 tpa. Towards this, basic engineering preparatory work has been carried out and steps have been initiated to obtain environmental clearance, which is expected in due course. Steps will be taken to reach desired capacity thereafter.

The management has made best efforts in optimizing margins by constant balancing of market demand and capacity available. The products of INEO-ABS continue to be in good demand from various user industries such as Automotive, Electronic /Entertainment and IT products manufacturers and we expect to continue our market leadership and maintain higher standards of quality and services. 

The key products include ABSOLAN and ABSOLAC which continue to be the preferred market choice among user industries such as Consumer Durables, Automotive, Business Machines, Telecommunications, Electronics and IT related machines.
 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

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