Advisory Services has been appointed by 'the expert committee
for public sector restructuring set up by the government
of Gujarat to conduct a diagnostic study of Gujarat State
Fertilizers & Chemicals Ltd. (GSFC). The expert committee
was set up for advising the government on restructuring
of state public sector undertakings (PSUs). The study
is expected to be completed in about a month.
Advisory Services has completed similar studies for 30
PSUs at the behest of government of India and state governments.
These are PSUs in the manufacturing, oil and gas, mining,
transport and service sectors. CARE has also prepared
a 'status paper' on sick fertiliser PSUs for the ministry
of chemicals and fertilisers, government of India.
diagnostic study aims at an in-depth examination of the
company and the industry in order to evaluate the company's
competitive position. Further, measures required for enhancing
shareholder value would be identified and a roadmap drawn-up
for its implementation. The diagnostic study covers five
major modules: industry review, assessment of the company,
need for restructuring, valuation of shares and recommendations
is a leading fertiliser and chemicals company with a diversified
product portfolio including nitrogenous and phosphatic
fertilizers and also industrial products. It had an annual
net turnover of Rs2,182 crore in FY 2003-04 and a profit
after tax of Rs174 crore. Fertilisers accounted for about
60 per cent of the turnover with
industrial products accounting for the remainder. Various
state government bodies hold about 40 per cent of the
equity with 21 per cent held by the Indian public.