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History of Finolex Industries Ltd.

1981

- The Comp. was incorporated on 28th March, in Maharashtra as a private limited Comp. & was converted into a public limited company on 1st December, 1988. It manufactures PVC Pipes & fittings. It was promoted by P.P. Chhabria & his associates. The Comp. acquired a manufacturing plant at MIDC Chinchwad, Pune & started commercial production of PVC pipes in May 1981.

1983

- 3,67,650 shares issued without payment in cash to members of Finolex Plastics Pvt. limited on its merger.

1987

- Letter of Intent was obtained for manufacture of 1,00,000 tonnes per annum of PVC resin.

- The Comp. entered into a technical collaboration agreement with Uhde GmbH, West Germany for licensing & technical know-how of Hoechst AGs process for manufacture of PVC resins & for provision of basic engineering.

- 8,42,919 Rights shares issued at par in prop. 1.5:1.

1989

- With the public issue of equity shares in May, the Comp. offered 3,50,000-14% secured redeemable partly convertible debentures of Rs 300 each of which 17,500 debentures were offered on preferential basis to employees [including Indian working directorss]/workers on an equitable basis [only 3,070 debentures taken ups]. 3,32,500 debentures together with the unsubscribed 14,430 debentures of employees' quota were offered & allotted to the Indian Public. Additional 52,500 debentures were allotted to retain oversubscription.

- Conversion of debentures was to take place at two stages viz., [as] A portion of Rs 50 of face value of each debenture into 5 No. of equity shares at par [Part `A's] at the end of 6 months from the date of allotment of debentures & [bs] a portion of Rs 100 of face value of each debenture into 10 No. of equity shares of Rs 10 each at par at the end of second year from the date of allotment of the debentures. The non-convertible part of Rs 150 of each debenture would be redeemed at par on the expiry of 9th year from the date of allotment of debentures.

- 17,50,000 shares issued at par out of which 87,500 shares reserved for preferential allotment to employees, etc. but only 37,600 shares taken up. The balance 16,62,500 shares, along with 49,900 shares not taken up by employees, were offered to the public in May 1990. Additional 2,62,500 shares allotted to public to retain oversubscription. 55,11,093 bonus shares allotted in prop. 3.907:1 to shareholders prior to the public issue.

- Comp. has effected an arrangement with LIC of India under group gratuity-cum-life assurance scheme so as to cover future payment of gratuity to retiring employees.

1990

- During September-October, the Comp. offered 27,36,667-14% secured redeemable convertible debentures of Rs 150 each of which the following debentures were reserved for allotment on a preferential basis: [is] 10,73,333 debentures to holders of 14% debentures issued in 1989; [iis] 10,40,000 debentures to shareholders of Finolex Cables, Ltd.; [iiis] 6,66,667 debentures to NRIs on repatriation basis; [ivs] 6,50,000 debentures to Financial Institutions/Mutual Funds & [vs] 5,33,333 debentures to employees of Company.

- The unsubscribed portion of 10,35,799 debentures of preferential quota was offered along with the public issue of 39,66,667 debentures. Additional 11,89,500 debentures were offered to retain over subscription. These debentures were allotted as follows: 90,68,934 on 30.11.90, 46,600 on 11.1.1991 & 3,966 on 23.2.1991.

- Rs 60 of face value of each debenture was compulsorily and automatically converted into 4 Equity shares of Rs 10 each at a premium of Rs 5 per share at the end of 18 months from the date of allotment of debentures.

- The remaining Rs 90 of face value of each debenture was to be redeemed at par on the expiry of 9 years from the date of allotment of debentures.

- Simultaneous to the rights issue in September, the Comp. offered 82,00,000-14% secured redeemable non-convertible debentures of Rs 100 each on rights basis to the existing equity shareholders in the ratio of 75 non-convertible debentures for every 100 shares held. Only 46,661 debentures were taken up. Out of balance 81,53,339 debentures, 78,39,095 debentures devolved on the underwriters. Allotment of 3,14,244 non-convertible debentures were kept in abeyance pursuant to Court orders.

- As per the terms of issue, each debenture of Rs 100 will be redeemed in three equal instalments at a premium of 5% at the end of 6th, 7th and 8th year from the date of allotment.

1991

- 40,25,000 shares allotted at par on 2nd conversion of 14% convertible debentures.

- To part finance its PVC Resin Project ['the project's]. The company had made , during the year under review, right issue & public issue of 14% Secured Redeemable Convertible Debentures of Rs. 150/- each and 14% Secured Redeemable Non-convertible Debenture of Rs.100/- each vide Letter of Offer dated 8th September, 1990 & Prospectus dated 10th August, 1990.

- The public & rights issues of Convertible Debentures were over-subscribed & the Comp. retained over-subscription to the extent of 15% of issue size as permitted by Controller of Capital Issues ['CCI's]. The allotment of 1,21,61,917 Convertible Debentures was finalised in consultation with Pune Stock Exchange Limited.

- The Comp. allotted 78,85,756 Non-Convertible Debentures.

- The Comp. signed during the year under review loan agreements with the Industrial Credit and Investment Corporation of Inida Limited being Lead Financial Institution for DM 29.553 million & for Rs 859 lakh [equivalent to DM 9.990s] for Project.

- The Comp. has signed Bridge Loan Agreement with industrial Development Bank of India for Rs 475 lakh which is due for repayment shortly.

- Rs. 100/- of face value of each of 14% Secured Redeemable Convertible Debentures [1989 seriess] have been converted into 10 Equity Share of Rs. 10/- each at par on 10th July.

- The non-convertible part of Rs. 150/- each of aforesaid Debenture [1989 seriess] will be redeemed in full at par on the expiry of nine years [i.e. 10th July 1998s] from the date of allotment of the Debentures.

- Each of 14% Secured fully Convertible Debenture of Rs. 100/- each shall be converted into such number of Equity Share of Rs. 10/- each, credited as fully paid-up, as decided by Controller of Capital Issue between 2nd & 4th years from the date of allotment of said Debenture namely 30th January 1990.

- Rs. 60/- out of face value of Rs. 150/- each of 14% Secured Redeemable Convertible Debenture [1990 seriess] will be converted into four Equity Share of Rs. 10/- each at a premium of Rs. 5/- per share on 30th May, 1992.

- The non-convertible part of Rs. 90/- each of afore said Debenture [1990 seriess] will be redeemed in full at par on the expiry of nine years from the date of allotment of Debenture [i.e. on 30th November, 1999s].

- 14% Secured Redeemable Convertible Debenture [1989 series s] & 14% Fully Convertible Debenture will be further secured by creating additional security as & by way of second & subservient mortgage and charge on the immovable & movable properties of Comp. and also such other properties which the Comp. may acquire infuture in favour of Trustees in such a manner & to such an extent as the Board of Director & the Trustees may agree upon.

- 14% Secured Redeemable Convertible Debenture [1990 seriess] will be further secured by creating additional security as & by way of second and subservient mortgage & charge on the immovable & movable properties of companies relating to its project for manufacture of 1,00,000 tpa of Poly Vinyl Chloride [PVCs] Resin & also on such other properties of project which the Comp. may acquire in future , in favour of Trustees, in such a form & to such an extent as the Board of Directors & the Trustees may agree upon.

- 14% Secured Redeemable Non-Convertible Debenture will be further secured by creating additional security by way of such a mortgage and charge on the immovable & movable properties of companies relating to its project for manufacture of 1,00,000 tpa of poly vinyl chloride [PVCs] Resin & also on such other properties of the project which the Comp. may acquire in future , in favour of the Trustee in such a form & to such an extent as the Board of Directors and the Trustees may agree upon.

1992

- The Ethylene di-chloride [EDCs] & ethylene unloading arms of the open sea cryopgenic jetty with unloading of three chemical tankers carrying EDC & ethylene were commissioned.

- During September/October, the Comp. offered 428,59,570 Rights equity shares of Rs 10 each for cash at a premium of Rs 30 per share in proportion 1:2. Additional 1,74,701 shares allotted to retain oversubscription.

- Another 21,46,612 No. of equity shares issued to employees [only 49,400 shares taken ups]. Unsubscribed portion of 20,97,212 shares allotted to UTI [10,00,000 sharess] & ICICI [10,97,212 sharess].

- Also 5,72,670 shares issued to ICICI, IDBI & IFCI. Of these 1,90,000 shares each were taken up by ICICI & IFCI.

- 109,46,662 Equity Shares of Rs. 10/- each existing at the beginning of the year, & pro-rata on 40,25,000 No. of Equity Shares of Rs. 10/- each allotted pursuant to the second compulsory conversion, which took place on 10th July, 1991, of 14% Secured Redeemable Convertible Debentures issued by Comp. to public in May 1989.

- Non-Convertible Debentures [1990 Issues] for making the respective Debentures fully paid-up. Secured Fully Convertible Debentures [1989 Issues] & Secured Redeemable Convertible Debentures [1990 seriess] have been converted into Equity Shares of Comp. on 1st April, 1992 and 30th May, 1992 respectively in terms of concerned consent orders received from the Controller of Capital Issues [CCIs].

- The Comp. signed during the year under review an agreement with the Industrial Credit & Investment Corporation of India Limited and Industrial Finance Corporation of India for term loan of Rs. 500 lakh for the Project.

- The Comp. proposes to issue 450,78,852 No. of Equity Shares of Rs. 10 each at a premium of Rs. 30 per Equity Share to its shareholders on rights basis, to its employees & to financial institutions

- The Comp. has received technical know-how from the collaborators namely UHDE GmbH, Germany for manfacture of PVC resin which project is under implementation.

1993

- Sales of pipes & fittings were affected due to prolonged transporter strike in two consecutive months during the first half of the year & lower utilisations of production capacity.

- The Comp. has successfully commissioned the ethylene di-chloride [EDCs] & ethylene unloading arms of open sea cryogenic jetty with unloading of three chemical tankers carrying EDC & ethylene.

- During the year under review, the Comp. made an issue of equity shares in terms of letter of offer dated 25th August, 1992. The issue of equity shares received an overwhelming response from the members of Comp. & was oversubscribed. The allotment of equity shares was made on 1st December, 1992.

- The Comp. has signed during the year under review a foreign currency loan agreement with The Industrial Credit & Investment Corporation of India Limited for term loan of Rs. 75 million under IBRD Pollution Control Project Line already sanctioned for PVC resin project.

- During the current year, a loan agreement has been also signed with Bank of Baroda, for a rupee term loan of Rs. 142.3 million for PVC resin project in accordance with the means of finance approved by The Industrial Credit & Investment Corporation of India Limited.

- The Comp. set up during the current year its own R&T centre at its registered office at Pune.

- The Comp. has received technical know-how from the collaborators namely UHDE GmbH, Germany for manufacture of PVC resin.

1994

- The entire PVC plant was commissioned. The Comp. undertook debottlenecking & balancing equipment programme to enhance the existing production capacity.

- During September, the Comp. issued 40,000,000 warrants to the promoter group on preferential basis. The warrants were to be converted into equal number of shares of Rs 10 each at a premium of Rs 34.44 per share. Accordingly 178,07,850 warrants were converted into equity shares.

- Finolex Polymers limited is a subsidiary of company.

- The sales of pipes & fittings were affected principally due to prolonged transporters' strike in two consecutive months during first half of year under review & lower utilisation of productive capacity as compared to the previous year.

- The Comp. has successfully launched its PVC resin on all India basis & the product has been well accepted by market.

- The Comp. will be introducing the emulsion/paste grade PVC into the market.

- The Comp. will be launching during the year its new product developed inhouse, namely SWR pipes & fittings.

- The Comp. has been granted the highest category credit rating, namely P1+ credit rating, by CRISIL for issue of commercial paper. The rating of P1 indicates that the degree of safety regarding timely payment on the instrument is very strong. '+' [pluss] sign for rating reflects a comparatively higher standing within the category.

- The Comp. has tied up with banks for working capital requirements of PVC resin division.

1995

- The entire PVC plant has got commissioned during the year under review.

- The Comp. has undertaken debottlenecking & balancing equipment programme to enhance the existing production capacity.

- The Comp. signed loan agreement with The Industrial Credit and Investment Corporation of India Limited to meet a part of cost of constructing additional storage facility for feed stock on site, forming part of expenditure to be incurred on debottlenecking and balancing equipment programme.

- The Comp. signed an amicable agreement with the workers' union on 6th October, 1994 which is valid for a period of three & half years ending 31st March, 1998.

- The non-convertible part of Rs. 150/- each of 14% Secured Redeemable Convertible Debentures [1989 Seriess] will be redeemed in full at par on the expiry of nine years from the date of allotment of Debentures i.e. on 10th July, 1998.

- The non-convertible part of Rs. 90/- each of 12,161,917-14% Secured Redeemable Convertible Debentures [1990 Seriess] will be redeemed in full at par on the expiry of nine years from the date of allotment of the Debentures i.e. on 30th November, 1999.

- The non-convertible part of Rs. 90/- each of 95,757-14% Secured Redeemable Convertible Debentures [1990 Seriess] will be redeemed in full at par at the expiry of nine years from the date of allotment of the Debentures i.e. on 3rd September, 2001.

- 14% Secured Redeemable Non-Convertible Debentures of Rs. 100/- each will be redeemed together with a redemption premium of Rs. 5/- per Debenture in three equal instalments at the expiry of 6th, 7th & 8th year from the date of allotment i.e., 30th November, 1996, 30th November, 1997 & 30th November, 1998 respectively.

1996

- The Comp. has introduced in the market five grades of suspension PVC & four grades of emulsion/paste PVC.

- The Pipes Division of Comp. has been granted Quality Systems Certification Licence as per IS/ISO 9002 by Bureau of Indian Standards, accredited by Raad Voor de Certificates, Netherlands.

- R.D. Aga, Director of Comp. then, passed away on 16th February.

- In June, the Comp. allotted 1,145,340 equity shares to financial institutions, namely The Industrial Credit & Investment Corporation of India Limited, Industrial Development Bank of India & Industrial Finance Corporation of India Limited at a premium of Rs.5 per share, pursuant to the Conversion option exercised by them in respect of their rupee term loan.

- In November, the Comp. redeemed [with proportionate premiums] 1/3rd of the aggregate face value of 7,885,756 Non-Convertible Debentures of Rs. 100 each In accordance with the terms of their issue & allotment.

1997

- The Comp. has installed jumbo bags unloading & raw material transportation system.

- In April, the Comp. signed loan agreement with Kredietbank N.V. for foreign currency loan of USD 9.6 million, with Ministry of Finance's approval under the External Commercial Borrowings ['ECB's] guidelines.

- The ECB facility has been set up in co-operation between Indusind Bank Limited & Kuedietbank N.V., Brussels - Belgium.

- The Comp. has given donations, bought benches & done electrification of classrooms & flooring for schools in Ranpar and Ratnagiri. The Comp. has also given donation to the remand home and to Aawishkar, the spastic institution in Ratnagiri attending to children.

- 367,650 No. of Equity Shares have been allotted for consideration other than in cash to the shareholders of erstwhile Finolex Plastics Pvt. limited pursuant to the scheme of amalgamation.

- 5,511,093 Equity Shares have been issued as fully paid up Bonus Shares by capitalisation of General Reserve.

- 2,012,500 No. of Equity Shares have been issued at par on 1st conversion of 14% Secured Redeemable Convertible Debentures [1989 Seriess] on 10th January, 1990.

1998

- LPG import & storage facilities set up by Comp. have been successfully commissioned.

- The Comp. has developed specialty fittings for large diameter pipes with elastomeric sealing ring joints.

- During the period under review, the Comp. redeemed 1989 Series Debentures fully & paid the second instalment of Nonconvertible Debentures.

- On 13th February, the Comp. signed the Agreement with National Securities Depository Limited dematerialising its equity shares for the benefit of its members.

- During the period under review, Mr. M.P. Modi was nominated as a Director on the Board of Directors of Comp. by Life Insurance Corporation of India.

- The Comp. has planted more than 30,000 trees near PVC plant to maintain ecological balance. These trees are being grown on water treated in the effluent treatment plant of Company.

1999

- The Comp. was honoured with the Mahratta Chamber of Commerce, Industries & Agriculture prestigious Dr. R.J.Rathi 'Environmental Pollution Control' award for outstanding efforts in controlling pollution & protecting the environment at the plant.

- The Comp. is setting up a PVC pipes plant of about 10,000 metric tons per annum capacity adjacent to its PVC plant.

- The Comp. signed during the year under review Tripartite Agreement with Central Depository Services [Indias] Limited & MCS Limited for dematerialisation of equity shares.

2000

- Crisil has assigned an `AA-' rating to the proposed Rs 50-crore NCD issue & `P1+' rating to the Rs 60 crore commercial paper programme of the company.

- The Company PVC plant at Ratnagiri has received a `Safety Award' from the National Safety Council, Maharashtra Chapter, for achieving the lowest accident frequency rate under the Chemicals & Fertilizers Industry Group, during 1999.

- The Board of Comp. proposed to buyback 10 per cent of its shares at a price not exceeding Rs 40 per share.

2001

- The Comp. is introducing a stock option scheme for its employees.

2002

-Finolex Industries has acquired 13.39% of company paid up capital from the open market under the buyback scheme.

-Finolex Industries has witnessed 56.69% increase in the net profit at Rs.59crs as against Rs.37crs.

-Mr.K.N.Atmaramani has been co-opted as the Additional Director of company.

-The Board of Finolex Industries have approved for expansion of installed capacity oc company PVC plant at Ratnagiri by additional 130,000MT per annum.

2003

-Finolex Industries Ltd have informed BSE that the Comp. is buying back its ordinary shares of Rs.10 each.

-Finolex Industries is increasing its capacity to produce Polyvinyl Chloride Pipes [PVCs] to 52000 tonne a year during the current fiscal.

-Finolex Industries is investing Rs.500cr with a view of expanding its Ratnagiri facility.

-Finolex infused Rs 23 cr to increase output & has added a new extrusion line at its Ratnagiri facility

2007

-Finolex Industries Ltd [FILs] is close to signing a agreement with Tishman Speyer India Ventures, a Comp. engaged in real estate development, for sale of its land in Chinchwad, near Pune, which currently houses one of its PVC pipe manufacturing facility.