Shree Synthetics Ltd, an Ujjain-based producer of nylon and polyester, is still struggling to return to profitability despite improvements in operations and infusions of capital, the Hindu Business Line reported.

Mr Shreekant Bangur, the present promoter, who took charge of the company in 1996 following a family arrangement, has invested fresh capital of Rs 12 crore through a preferential allotment of Rs 10 equity shares.

The company is also discussing a possible debt restructuring scheme with its bankers to reduce the company's interest burden, which in the least accounting period accounted for over 22 per cent of turnover.

For the nine-month period ending on March 31, 2000, the total losses of Shree Synthetics, which was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1997, was Rs 131.23 crore. However, for the half year ended September 30, 2000 the net loss was reduced to Rs 12.33 crore from Rs 19.63 crore registered in the first half of 1999-2000.

According to the sources, the turnover is likely to show some improvement during 2000-01. Loss too would come down.

"In the last accounting period of nine months, income from sales was Rs 91.61 crore but this fiscal (12 months) we are expecting a turnover of Rs 120-130 crore", sources said.

Shree Synthetics' plant is located in Ujjain. It has a capacity of 11,000 tonnes per annum (tpa), out of which 6,000 tpa is nylon and the rest polyester.