Some nuggets from Ratings report
Healthy demand for bromine and industrial salt, and reduced Chinese production due to resource depletion, have resulted in firming up of realisations in the recent past.
The company entered into a (MOU with Government of Gujarat (“GOG”) during the Vibrant Gujarat Summit dated January 13, 2005 and subsequently entered into a land lease agreement with GOG on July 14, 2008 and further executed a supplementary agreement (MOU) dated August 10, 2010, with GoG. Subsequent to the expiry on July 31, 2018, a renewal application was filed on December 28, 2017 as per the guidelines laid down by GOG. As per the MOU and lease agreement executed with GOG, the lease term can be further extended for a duration and conditions as mutually agreed at that time. ACIL has been receiving demand notes annually for the revised lease rents as per GOG circular and the management has been making these payment obligations on a regular basis. If the land lease is not renewed or terminated by the GOG, ACIL may be required to relocate its business operations or shut down its manufacturing facility, which may adversely impact its business.
The company supposedly has favorable political linkages which might be why authorities are mum about lease validity. Nonetheless near term outlook looks good due to war in Israel
Blast from the past…
https://indianexpress.com/article/cities/ahmedabad/24000-hectares-leased-for-a-song-hc-issu/
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