History of Hindusthan Engineering & Industries Ltd.

YEAR EVENTS 1944 - The Comp. was incorporated on 11th September, at Calcutta. The Comp. manufactures structural & permanent way materials, railway points & crossing, steel sleeper sets & turnouts, railway bridge girders, all kinds of structural works, chemical plant equipments such as heat exchangers, pressure vessels, reactors, deep freeze units, columns dryers, filters, etc. all types of press work & precision jobs, C i Castings, light & heavy industrial fans, high tensile wires etc., & calcined petroleum coke & other allied products.

1948 - All shares issued for cash. Arrears not know.

1979 - Cyanides & Chemicals division was set up. The project was based on natural gas available at village Olpad in Surat district of Gujarat State for manufacture of hydrocyanic acid, sodium & potassium cyanides & complex cyanides.

- A technical collaboration agreement was entered into with Vychodoceske Chemicke Zavody Synthesia N.P., Czechoslovakia. Tata Economic Consultancy Services were retained for preparing the market survey report & Humphreys & Glasgow consultants Pvt. Ltd., were awarded the turnkey contract.

1986 - A letter of intent was received for manufacture of 6,000 tonnes per annum of high tension insulators in Madhya Pradesh in technical collaboration with Rehinisch-Westfalische Isolation-Werke GmbH, West Germany.

- Hindustan Kokoku Wire limited [HKWs] was merged with the Comp. with effect from 1st January. Consequent upon the merger 1,92,000 No. of equity shares of Comp. were issued without payment in cash to the shareholders of Hindustan Kokoku Wires Ltd.

- 41,00,000 bonus equity shares issued in prop. 1:1.

1987 - The Comp. undertook to set up a composite steel plant with a capacity of 1,25,000 tonnes per annum on a place of land admeasuring 109 hectares of Malanpur in the Bhind district of Madhya Pradesh. Foreign technical collaboration with Hamburges Stahl Werke, West Germany, was approved by Government of India.

- A letter of intent was received for enhancement of capacity from 1,25,000 TPA to 2,50,000 TPA of steel shaped products.

- Gerald Engineering Ltd., was merged with the Company. Consequent upon this merger, 31,125 No. of equity shares of Comp. were issued without payment in cash to the shareholders of Gerald Engineering Ltd.

- 2,23,125 shares issued without payment in cash to the erstwhile shareholders of Hindustan Kokaku Wire, limited [1,93,000 sharess] and Gerald Engineering limited [31,125 sharess] on their merger.

1988 - The Comp. had taken up the running of jute mill of Dalhousie Jute Comp. on working arrangement basis with effect from 1st February.

- During November, the Comp. offered 16,84,625 - 12.5% partly convertible debentures of Rs.145 each [series VIIs] as rights to the existing equity shareholders in prop. 1 debenture : 5 equity. All were taken up. Additional 12,51,800 debentures were allotted to retain oversubscription.

1989 - As per the terms of issue, Rs.45 out of each debenture was automatically & compulsorily converted into one equity share of Rs.10 each at a premium of Rs.35 per share as on 1st April. The non-convertible portion Rs.100 per debenture would be redeemed in 5 equal annual instalments commencing from the 8th year from the date of allotment of debentures.

- During August, the Comp. offered 21,77,116 - 12.5% parly convertible debentures of Rs.145 each [series VIIIs] as follows:

- [is] 20,73,444 debentures as rights to the equity shareholders of the Comp. in prop. 1 debenture : 5 equity shares. Additional 1,65,120 debentures allotted to retain oversubscription &

- [iis] 1,03,672 debentures to employees & working directors of the Comp. on preferential basis [only 8,250 debentures taken ups]. Unsubscribed portion of 95,422 debentures was allowed to lapse.

- Subsequently, 52 debentures allotted [12 debentures on 24th August, 1991 & 40 debentures on 1st November, 1991s] which were kept in abeyance.

- 19,44,095 No. of equity shares allotted in conversion of 12.5% [Series VIIs] debentures on 1.4.1989.

1990 - The Tiljala plant achieved a higher sales due to improvement in product-mix.

- The Comp. runs Chemical Division under the name & style of Petrocarbon and Chemicals Co., at Haldia in West Bengal.

- Production at the Haldia Unit declined due to scarcity of raw petroleum coke.

- The Haldia unit received a letter of intent for production of 50,000 TPA of caustic soda.

- The Haldia unit extended the existing sodium/potassium Cyanide foriegn collaboration agreement with Lucenbi Zavody, Czekoslovakia for a further period of 5 years.

- The chemical division substantially increased the production of diphyenyl guanidine due to its wide acceptance.

- The Chemical division signed an agreement with Lachema S.P. Czechoslovakia for developing a process for manufacturing cyanuric chloride. A pilot plant was being set up for cyanuric chloride.

- 22,000 No. of equity shares of Rs.10 each were issued as per the scheme of amalgamation suggested by BIFR to the shareholders of erstwhile DJCL without payment in cash.

- The convertible portion of Rs.45 [Part `B's] of each debenture was compulsorily converted into one equity share of Rs.10 each at a prem. of Rs.35 per share on 1st April.

- The non-convertible portion of Rs.100 [Part `A's] of each debenture was to be redeemed at par in five equal annual instalments started from the end of 8th year from the date of allotment of debentures.

- In order to meet the various requirements of capital expenditure for modernisation of engineering plants & other on going project, the Comp. offered during April, 1,76,62,410 No. of equity shares of Rs.10 each at a prem. of Rs.25 per share. Out of total issue 168,21,343 No. of equity shares were offered as rights in the prop. of 4 equity shares for every 3 equity shares or every 3 convertible portion of debentures - Series VIII held on 8th February.

- The balance of 8,41,067 No. of equity shares were offered to the employees & working directors of Company. All the equity shares offered on rights basis were taken up but only 1,01,700 shares were taken up by employees. Additional 25,05,145 No. of equity shares were allotted to the subscribers of rights offer in order to retain oversubscription. Unsubscribed portion of employees quota was allowed to lapse.

- 22,46,814 No. of equity shares allotted in part conversion of 12.5% [Series VIIs] debentures on 1.4.1990, 194,28,188 No. of equity shares allotted on Rights basis.

1991 - The working of Tiljala plant also improved due to better product-mix. The plant was being modernised to add new products to the existing range.

- A letter of intent was received for manufacture of methylmethacrylate/polymethylmethacrylate.

- The operations of Dalhousie jute Comp. were adversely affected for a period of two months due to industry wide general strike.

- Subsequently, 60 debentures allotted on 24th August, which were kept in abeyance.

- Another 88,665 debentures were offered to employees [including Indian working directorss]/ workers of Comp. on an equitable basis. Only 7,670 debentures taken up. The remaining 80,995 debentures were allowed to lapse.

- 22,000 shares allotted as per scheme of amalgamation of Dalhousie Jute Co., limited 6,012 No. of equity shares issued which were kept in abeyance [4,250 shares on 24.8.1991 & 1,762 shares on 11.11.1991s].

1992 - The Comp. issued 2,00,11,674 - 14% secured redeemable partly convertible debentures of Rs.150 each of which [is] 58,33,500 debentures were offered in January, on rights basis to the then existing equity shareholders in the ratio of two debentures for every eleven equity shares held.

- Additidonal 8,75,025 debentures were allotted to retain oversubscription. The debentures were allotted on 14th March, while keeping 3,667 debentures in abeyance.

- Simultaneously, [iis] 2,91,674 deentures were offered to the employees/workers of Company. Only 17,150 debentures were taken up & the balance 2,74,524 debentures were allowed to lapse on the debentures kept on abeyance 727 debentures were allotted as 14th September.

- The remaining [iiis] 138,86,500 debentures were offered for public subscription in February of which 6,94,325 debentures were reserved for preferential allotment to employees/workers of the Company. None were taken up & all were added back to the public issue of 131,92,175 debentures. Additional 20,82,950 debentures were allotted to retain oversubscription. All the debentures were allotted on 21st April.

- Rs.50 of face value of each debenture was to be converted into one equity share of Rs.10 each at a prem. of Rs.40 per share after 6 months from the date of allotment of debentures.

- Another Rs.50 of face value of each debenture was converted into one equity share of Rs.10 each at a prem. of Rs.40 per share after 18 months from the date of allotment of debentures. The remaining Rs.50 of face value of each debenture was to be redeemed at par in five equal annual instalments beginning from the 7th year from the date of allotment.

1993 - The Santragachi plant was under lock out for four months due to agitation by a section of work men.

- Heat treatment salt plant undertaken as a part of forward itegration programme, was successfully commissioned. Also, a letter of intent received for setting up the plant for manufacture of Cyanonic chloride was under implementation.

- Chemical Unit has also obtained the aproval for increase in capacity of Hydrocyanic Acid & Sodium Cyanide from Govt. of India. ISO-9002 Certificate has also been received concerning Sodium Cyanide, Potassium Cyanide & Diphenyl Guanidine.

- 453,65,840 in part conversion of A and B of 14%. 727 No. of equity shares allotted out of 4727 shares kept in abeyance. 319,38,900 No. of equity shares allotted in conversion of A, B of 14% PCD. 67,22,008 shares allotted in part conversion of 14% rights debentures. Another 67,13,205 shares allotted in conversion of `B' part of 14% debs.

1994 - The project for Low Relaxation [Stabilised PC Strands] at Bharatpur is set to be fully commissioned.

- During September, the Comp. issued 317,07,317 GDRs with 158,53,659 warrants for US$ 161.25 millions including green-shoe option. Each GDR is to be converted into one equity share.

- As per this, 317,07,317 shares were allotted on 27th September at a price of Rs.64.30 [on a prem. of Rs.54.36s] & another 5365852 shares were allotted on 20th October, at a price of Rs.64.30 [prem. of Rs.54.30s] against GDRs on excercisory of green shoe option.

- Each warrant is to be converted into 1000 shares of company at a price of Rs.35 per share exercisable at the option of the shareholder after 3 years.

- 13,530 shares kept in abeyance allotted. 317,07,317 shares underlying GDRs allotted. Another 53,65,852 shares allotted on excercise of green shoe option. Till date 340,11,114 shares taken up.

1995 - Authorised capital increased.

1996 - The Companies division in Northern India was severely affected by natural calamities & power shortage. Expansion work at Faridabad was behind schedule due to labour unrest.

1997 - Both the plants at Bharatpur & Faridabad were affected due to labour unrest & difficult market conditions.

- Cyanuric Chloride unit received a letter of intent to increase the existing capacity of diphenyl Guanidine plant.

- Production & sales were lower compared to previous year due to lower gold mining activity & weakening of gold prices in the international markets.

1998 - The Santragachi plant witnessed a decline in its turnover due to recessionary trend coupled with reduced procurement of wagons.

- Due to the recessionary trends coupled with poor availability of raw materials & difficult market conditions both the plants at Bharatpur & Faridabad couldn't achieve its targeted productions, turnover & profitability.

- Due to the difficulties faced by some of its major customers, the sales & productions of Company Chemical Division at Haldia, declined.

- The performance of Company chemical division at Olpad was not satisfactory due to over supply globally.

- The Company steel division at Malanpur declined due to continous recession in the steel industry.

2000 - The Company jute mill, Dalhousie Jute Company, has been closed down due to jute mill strike with effect from 22nd March.

- The Comp. has declared lock-out at the Bharatpur plant at its unit General Engg. Works with effect from 1st May.