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Ecoboard


Ecoboard is in the business of manufacturing ‘Particle Boards’ that are used as wood substitutes in furniture.

The products are eco-friendly – in that they help with conservation of forests, prevention of pollution, etc.

The company’s performance over the last five years has been erratic – reporting net losses in the last three years including net losses of 3cr on a declining revenue base of 25cr in the last nine months ended 31st December, 2011.  Considering this, it operated with an uncomfortably high net debt load of about 20cr as at 31st March, 2011 (latest not available), although this was amply covered by other net current assets.

The critical risk facing the business is the lack of sufficient raw materials i.e. bagasse.  Moreover, there is a lack of sufficient public awareness for these types of products.

The company has not grown much over the last few years and incurred operating losses in the last financial year.  Furthermore, it has also suspended manufacturing activities at one of its units for well over a year now.

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