The world’s second largest maker of optical-media storage discs has approved a plan to raise $125 million in equity or bonds, as it tries to shake off five consecutive quarters of losses.
New Delhi-based Moser Baer, which makes discs for 12 major global storage media brands, first began observing over-supply of blank CDs, DVDs and Blu-rays in 2004.
But, reporting Q1 results last month, it observed a “correction of over-supply in the global storage media market” and “strong recovery of storage media market”, resulting in a 15.8 percent jump in in shipments. In fact, coupled with price stabilisation of the raw materials for the discs, it has prompted Moser Baer to call the market for plastic discs “resurgent”.
That may be thanks to Blu-ray, shipments of which are growing at a “high rate”, Moser Baer says. Still, that didn’t stop its own Q1 losses dipping five percent lower from last year to Rs 9.221 crore.
Reasons for the money raise weren’t given by Moser Baer. Even before today’s intention was made clear, the company had reported it was back on track to profitability in the “coming quarters”.
Economic Times says the losses have “forced (the company) to look more aggressively at expanding its solar business”. The company has started making photo-voltaic cells.
In recent years, it has also begun selling movie DVDs in local kiosks in India after acquiring rights.