JAI CORP - RECENET DEVELOPMENTS ....

Jai Corp Limited has informed the Exchange that: "The Company has temporarily suspended production at its plastic processing unit at Murbad. However, as the production from this unit is only about 5% of the total production achieved by the Company during the year 2007-08 and loss of production is expected to be about 3% of the total installed capacity, the Company does not expect this suspension of production to materially affect its operations for the year 2008-09."...

Diversification into gas distribution fuels rally in Jai CorpJai Corp was locked at upper limit of 5% at Rs 324.30 on BSE on reports the firm plans to get into distribution and supply of city gas and liquified petroleum gas.Meanwhile, the BSE was up 341.02 points, or 2.45%, at 14392.93.On BSE, 4539 shares were traded in the counter. The scrip had an average daily volume of 2.18 lakh shares in the past one quarter.The stock hit a low of Rs 316.10 so far during the day. The stock had a 52-week high of Rs 1450 on 10 January 2008 and a 52-week low of Rs 268.85 on 2 July 2008.The scrip had underperformed the market over the past one month till 28 August 2008, sliding 30.51% compared to the Sensex's 2.10% fall. It had also underperformed the market in the past one quarter, falling 51.14% compared to Sensex's 14.99% fall.The mid-cap steel maker has an equity capital of Rs 17.85 crore. Face value per share is Rs 1.The current price of Rs 324.30 discounts its Q1 June 2008 annualised EPS of Rs 4.71, by a PE multiple of 68.85.According to reports, the company intends to start supply of city gas and liquified petroleum gas (LPG) to its special economic zones (SEZ) in Mumbai and Navi Mumbai. Later, it will expand its operations in other cities.Jai Corp plans to supply gas through three subsidiaries viz. Urban Gas, Urban Gas Distribution and Urban Gas Suppliers. It will shortly seek the government's approval for the same, the reports added.The media report quoted Anand Jain, chairman, Jai Corp as saying that the company has passed an enabling resolution to get into the distribution of city gas. Jai Corp's fell 38.3% to Rs 21 crore on a 98.1% rise in sales to Rs 101.45 crore in Q1 June 2008 over Q1 June 2007. Jai Corp is engaged in manufacturing of sheets and coils, fabrics and spinning yarn.-CM...

Jai Corp likely to foray into city gas, LPG distribution-MUMBAI: Anand Jain promoted Jai Corp steps on gas. The company plans to get into distribution and supply of city gas and liquefied petroleum gas (LPG), hitherto an area primarily dominated by the government-owned oil marketing companies (OMCs).Confirming this move, Anand Jain, chairman Jai Corp told ET, "We have passed an enabling resolution to get into the distribution of city gas." The company intends to start supply of city gas and LPG to its SEZs in Mumbai and Navi Mumbai. Later, it will expand its operations in other cities. Jai Corp plans to supply gas through three subsidiaries namely Urban Gas, Urban Gas Distribution and Urban Gas Suppliers. It will shortly seek the government's approval for the same.Although the company will supply gas to its twin SEZs in Mumbai to begin with, it will later extend the operations in other parts of Maharashtra. "We will take out gas supply business to the cities where we will set up townships," he said. Reliance Industries (RIL), it may be mentioned, is barred from getting into supply business in Mumbai as per the no-compete agreement it signed with the Anil Ambani group. Mr Jain is a close confidante of RIL's chairman Mukesh Ambani.The family agreement, which divided the Reliance empire between the Ambani brothers three years ago, kept the distribution of city gas in Mumbai and New Delhi exclusively reserved for the Anil Ambani Group. Therefore, RIL has sought the government's approval for the gas projects in 52 cities except New Delhi and Mumbai.LPG is the most popular fuel in Indian households. So, creation of an LPG distribution network is a logical extension for the infrastructure company which has been setting up three SEZs. "Going forward, the company will also cater to the LPG requirements of other small cities," said Jai Corp in its latest annual report. Mr Jain is chairman of Navi Mumbai SEZ (NMSEZ) and Maha Mumbai (MMSEZ), where Jai Corp has a 10% stake.Interestingly, two associate companies of Jai Corp have received the support of Maharashtra government to set up two 2,000 MW power plants in Raigad and Thane districts of Maharashtra, near the proposed SEZs. The 2005 family settlement prohibits Reliance Industries from getting into power business. Jai Corp has got the government approval to acquire agricultural land over 250 hectares for setting up two township projects in Maharashtra. These townships will house the people working within the two SEZs.ET...