Press Review >>> April 2004

 

 

 

 
Southern Online Services to enter Biotechnology field - The Indian Express - April 11, 2004

Southern Online Services Ltd, a Hyderabad-based Internet service provider and a public listed company, is entering biotechnology area by acquiring Southern Biofe Bio Fuels Pvt Ltd. The biotechnology venture is proposing to set up commercial biodiesel production unit near Hyderabad with an investment of Rs. 14.84 crore.

The company recently held an Extra Ordinary General Meeting with its share holders to consider raising the company's authorised capital from Rs. 6 crore to Rs. 12 crore and to go for an issue of 62,96,603 equity shares of Rs. 10 each amounting to Rs. 6.29 crore through rights / further issue to the existing shareholders and others in a ratio of 1:1.

The EGM also considered altering the main objects of the memorandum of association of the company incorporating the objects enabling the company to undertake activities of biotechnology, manufacture of biodiesel, alternative fuels, etc.

The Extra Ordinary General Meeting has also decided to change the name of the company as Southern Online Bio Technologies Ltd in view of the change in the business and also allotment of 3,43,097 equity shares of Rs. 10 each amounting to Rs. 34.30 lakh of the company to the shareholders of Southern Biofe Bio fuels Pvt Ltd for consideration other than cash in exchange for the purchase of shares of Southern Biofe Bio fuels Pvt Ltd under preferential allotment.With this new business SOL is targeting to achieve more profits as per N. Satish Kumar, Managing Director, SOL.

"The reason of entering into this new activity is that the company already proved that it can run any new business successfully. We were new when we started ISP. There is no wrong getting into any new business activity which provides benefits to the company," he said.

"More over biodiesel has got more reach as it has been accepted by the global market. Currently global market is striving to reduce pollution with alternative fuels like biodiesel and the viability of the product is unquestionable," Satish added.