Higher Dividend and Diversifying Hansaviek HYDERABAD ASBESTOS CEMENT PRODUCTS is participating in a new project for manufacture of 36,000 tonnes per annum of asbestos cement sheets, promoted by Kerala State Industrial Development Corporation (KSIDC). The cost of the project is estimated at Rs 4.60 crore. A public limited company under the name and style 'Malabar Building Products' is being registered in Kerala to implement the project Total equity share capital of the company will be Rs 1.50 crore. Hyderabad Asbestos proposes to subscribe equity shares in that company upto Rs 61.50 lakh, which would constitute 41 per cent of equity capital. The remaining euquky shares will be subscribed by KSIDC and the public. It is envisaged that Hyderabad Asbestos will also be supplying plant and machinery and rendering technical assistance to the project upon terms and conditions to be mutually agreed. Hyderabad Asbestos is also investing more in Nepal Metal Company, incorporated in Nepal for exploitation of lead and zinc in Nepal, in which it is holding 60,000 preference shares of Nepalese Rs 100 each (equivalent to Indian Rs 45 lakh) alloted to it in consideration of prospecting work done in past years and expenses incurred therefor. In addition, it is also required to hold 25 per cent of the total equity capital of that company as per the arrangement earlier entered into with the Government of Nepal. Approval of the Central government has already been obtained for subscribing/ investing in equity shares of that company, of the face value of Nepalese Rs 2.1 million (equivalent to Indian Rs 15 lakh), to be paid through export of plant and machinery from India. The plant and machinery will be exported in due course. Due to escalation in the project cost, that company has increased its equity capital from Napalese Rs 8.4 million to Nepalese Rs 18 million. Accordingly, Hyderabad Asbestos is now required to subscribe further equity shares of the face value of Nepalese Rs 2.4 million (equivalent to Indian Rs 17 lakh).
