MUMBAI, JANUARY 24: Soap and detergent maker Nirma Ltd has decided to acquire the business of Kisan Industries Ltd (KIL) for a cash consideration of Rs 200 crore with effect from April 1, 2000. Kisan, having manufacturing facilities for detergents and fertilisers and for printing and packaging at Moraiya village in Ahmedabad district, had the right to manufacture 20 per cent of Nirma brand of detergents.The board, which approved the unaudited Q3 results on Monday, announced early redemption of outstanding non-convertible debentures and secured premium notes issued in 1966 by way of a rights issue. The NCD/SPN carried an interest rate of around 17 per cent per annum and proposed to redeem the SDM at Rs 361 (including premium) and the NCD at Rs 237 (including accumulated interest) to existing holders.The companty has decided to postpone the period of conversion of warrants issued along with the aforesaid NCD/SPNs, to be exercised in four stages every year, beginning October 2000. The conversion price of warrants remain the same as originally proposed at Rs 50 per share. The equity capital of the company will now go up to Rs 79.40 crore from Rs 33.90 crore.Nirma has registerd a 70 per cent rise in net profit to Rs 76.31 crore during the third quarter ended December 1999 as compared to Rs 44.82 crore in the same period last fiscal. Its gross sales during the same period was Rs 419.33 crore, a rise of 10.6 per cent from Rs 379.07 crore in the corresponding period last year.While the consumer goods segment has registered 26 per cent growth, said a press release, the overall sales growth has been constrained due to a plant shutdown in the industrial product segment to manufacture N-Paraffin. During the last financial year (1998-99), the company had recorded a net profit of Rs 170.55 crore from a turnover of Rs 1,473 crore.
