History of Indo Rama Synthetics [Indias] Ltd.
YEAR EVENTS 1986 - The Comp. was incorporated on 28th April, & obtained Certificate of Commencement of Business on 24th November. It was promoted by Shri M. L. Lohia and Shri. A. P. Lohia. The Comp. manufacture synthetic yarn.
- The Comp. undertook to set up a spinning mill with a complement of 21,120 spindles to manufacture synthetic yarn. Latest technology & machineries such as autoconers 238 fitted with electronic computer centres were imported from M/s. W. Schlafhorst and Co., West Germany. Other plant & machineries were procured indigenously from Lakshmi Machine Works Ltd., and Trumac Engg. Co. Ltd.
1989 - Necessary approvals were received for enhancing the existing capacity to 41,184 spindles for synthetic blended yarn & 120 looms for making synthetic fabrics in the existing unit. Necessary steps were taken for procuring machines & other equipments for said expansion programme which was implemented during 1991.
- The Comp. proposed to further expand its capacity by 25,000 spindles to manufacture cotton & synthetic blended yarn.
- The Comp. proposed to set up a 100% Export Oriented Unit [EOUs] with a capacity of 24,960 spindles at Pithampur Industrial Area, M.P.
- The Comp. proposed to set up an industrial undertaking in M.P., for manufacture of 2.5 million number of automobile tyres & 2.5 million numbers of automobile tubes.
- 7 No. of equity shares subscribed for by signatories to the Memorandum of Association. 89,39,993 No. of equity shares then issued at par of which the following shares were reserved and allotted: [is] 49,19,993 shares to promoters/directors [including NRIs on repatriation basiss] & [iis] 4,20,000 shares to MPAVN. Of the balance 36,00,000 shares, the following were reserved for allotment: [is] 3,00,000 shares to UTI [Firms], [iis] 3,00,000 shares to SBI Capital Markets limited [Firms] & [iiis] 4,47,000 shares to the employees [including Indian working directorss] of the Comp. [only 1,42,300 shares taken ups]. The remaining 25,53,000 shares, along with 3,04,700 shares not taken up by employees were offered to the public during June 1989 [all were taken ups]. Additional 10,16,250 shares were allotted to retain oversubscription [5,40,000 to public & 4,76,250 to directors, their friends, etc.s]
1991 - The Comp. commissioned 17,280 spindles.
- The Comp. embarked on a backward integration project at Nagpur to manufacture 63,000 tpa of Polyester Oriented Yarn [POY - 38,000 tpa, Polyester Staple Fibre & Polyester Chips [PSF and PC - 25,000 tpas]. Also a spinning unit with 59,184 spindles was being set up alongside the plant.
- The state-of-the-art plant will use technology from the world leaders Chemtex International Inc./Du Pont of USA for polymerisation & POY & Toyobo of Japan for PSF.
- During April, the Comp. offered 10,45,410-14% secured redeemable partly convertible debentures of Rs 200 each for cash at par as follows: [is] 9,95,630 debentures were offered on rights basis in the proportion 10:100 No. of equity shares held [all were taken ups]. Additional, 1,49,345 debentures were allotted to retain oversubscription. [iis] 49,780 debentures were offered to employees [including Indian working directorss]/workers of the Comp. on an equitable basis [all were taken ups]. Additional 7,467 debentures were allotted to retain over-subscription.
- Part A of Rs 50 of each debenture would be automatically converted into 5 No. of equity shares of Rs 10 each at par at the end of six months from the date of allotment of debentures. Accordingly 60,11,105 No. of equity shares were allotted.
- The Comp. had converted 11,87,340 debentures [Part-Bs] of Rs 50 each into 23,74,680 No. of equity shares of Rs 10 each at a premium of Rs 15 per share after received positive consent. The remaining 14,881 debentures were redeemed in the absence of receipt of positive consent.
- The non-convertible portion - Part C - of Rs 100 of each debenture would be redeemed at par in three annual instalments at the end of 7th, 8th & 9th year from the date of allotment of the debentures.
1992 - The Comp. commissioned 8,160 spindles in Unit II at Pithampur. The Comp. proposed to further add 21,984 spindles at Pithampur unit of which 4,704 spindles were expected to be commissioned by September 1993 & balance 17,280 spindles by December 1995.
1993 - During September/October, the Comp. offered 1,11,36,000 Zero Interest Fully Convertible Debentures of Rs 240 each on right basis to the existing shareholders in the ratio of one FCD: 2 equity shares held. Out of which 1,14,982 FCDs were offered to the employees. Only 2,775 debentures were taken up.
- Part `A' of Rs 60 of debenture was converted into one equity share at a premium of Rs 50 per share after 6 months from the date of allotment. Accordingly 11023,793 shares allotted. Part `B' of Rs 180 was converted into 2.2 equity share of each FCD. Accordingly 242,52,344 No. of equity shares were allotted on 31st January 1995.
1994 - The Comp. commissioned 44,208 spindles & the balance 14,976 spindles were expected to be installed shortly.
- In Draw Texturising Yarn plant 14 machines were commissioned and the balance two machines were to be installed by end of July 1995.
- The Comp. successfully implemented backward integration plant of 67,000 MTPA at Nagpur. Also undertook further expansion of capacity from 67,000 MTPA to 2,35,000 MTPA which was being implemented as per schedule.
1995 - In view of captive consumption of PTA of 2,00,000 tonnes per annum the Comp. proposed to put up a PTA plant with an installed capacity of 3,50,000 tonnes per annum.
- The Comp. issued 43,975,380 Global Depositary Receipts at a price of US $ 11.37 per GDR underlying same number of equity shares of Rs 10 each.
1996 - The Comp. raised its polymer capacity from 69,300 tonnes to 238000 tonnes per annum, to become the second largest producer of polyester products in the country.
- The Comp. finalised a technology tie-up with MFTSUI Petrochemical Industries limited of Japan for PTA project.
- The Comp. proposed to integrate forward with the setting up of a weaving & processing unit at an estimated investment of Rs 200 crores.
- 28,659,086 bonus shares allotted in the ratio 1:2, 43,975,380 shares allotted against equal number of GDRs.
1997 - The Comp. undertook to set up a PTA plant as a backward integration with a capacity of 3,50,000 tonnes per annum at an estimated cost of US $ 340 million.
- The Comp. entered into a joint venture with Mitsui Chemicals Inc., Japan for technology transfer of PTA. The Comp. promoted a joint venture Co. in the name of Indo Rama Petrochemicals Ltd.
- The Comp. is the second largest producer of polyester in India & holds a marketshare of 20 per cent.
- Indo Rama Synthetics has shut down one of its three poly condensation units at Butibori. The unit had been shut for maintenance & operational purposes. The Comp. had adequate stocks & supplies were not affected. Indo Rama had shut the line because of stock pile up.
- Indo-Rama Synthetics has signed a $ 175 million syndicate loan facility in Singapore, which will be used for refinancing existing loans as well as general corporate purposes.
- Indo Rama Synthetics [Is] Ltd [IRSILs] has won the Federation of Indian Export Organisation `Niryat Shree' award for excellence in export performance.
- Indo Rama Synthetics, the country largest polyester producer, has won the Commerce Ministry coveted National Export Award for its improved export performance for 1995-96.
- The 3,50,000 tpa PTA plant will be a joint venture between Indo Rama & the Japanese companies Itochu Corporation & Mitsui Petrochemicals Corporation.
- Indo Rama Synthetics, a key producer of polyester, has announced a tie up with global trading technology giants, Itochu Corporation & Mitsui Petrochemicals Corporation, both of Japan for setting up a Rs 1,200 crore PTA plant with a licensed capacity of 3.50 lakh tonnes annually.
- Indo Rama Synthetics India Ltd [IRSILs] is tying up with Shikibo of Japan to set up a Rs.550 crore textile manufacturing unit in Dharwad, Rajasthan.
- Labour problems have forced Indo Rama Synthetics to close its spun-yarn division at Butibori in Nagpur.
- It has set up a Rs 555 crore plant at Butliboi near Nagpur for production of synthetics yarn, polyester staple fibre and partially oriented yarn.
- The Union Commerce Minister, presented the Synthetic and Rayon Textiles Export Promotion Council award for best overall export performance during 1996-97 to Indo Rama Synthetics Ltd [IRSLs].
- The Comp. has proposed to open more marketing outlets/representative offices in interior Tamil Nadu, particularly in areas where clusters of textile spinning units are operating.
- A memorandum of understanding [MoUs] for a joint venture agreement was signed between Indo Rama & Itochu Corporation & Mitsui Petrochemicals for first phase with a 3.5 lakh tonne per annum capacity. - 25,793,177 rights shares of Rs.10 each [prem. Rs. 30 per shares] issued in prop. 3:10.
1998 - Indo Rama will sign a shareholders agreement for its PTA project which will be financed by equity worth Rs.420 crore, while the balance Rs.940 crore would be tied up by debt.
- Indo Rama Synthetics, the second largest polyester producer, has announced plans to increase capacity of its Butibori plant through de-bottlenecking of existing lines.
- INDO RAMA Synthetics [Indias] Ltd is to set up a PTA & polyester unit near Mangalore.
- Indo Rama Synthetics the O P Lohia controlled petrochemicals company-has proposed a restructuring plan, to implemented from January 1.
- Indo Rama has also changed the method of accounting interest on delayed payments/amount due from customers for current year from cash basis to accrual basis.
- Indo Rama has entered into a long term agreement for supply of raw materials - PTA & MEG - anticipating a rise in their prices.
1999 - INDO Rama Synthetics [Is] Ltd has shut down two of its three polyester lines at its plant in Maharashtra, following violence among the workforce.
- The Comp. is one of leading players with a 16 per cent market share in the polyester industry. The plant in Maharashtra has a total capacity of around 2.50 lakh tonnes of polyester, including staple fibre & partially-oriented yarn.
- The Comp. has shut down its third polycondensation line as well over the past few days, thus rendering the entire plant closed.
- The two lines of polyester were shut on July 30, following violence between two rival factions at the plant, company officials said. Indo Rama has a 2,000-strong workforce.
- The Comp. is one of leading players with a 16 per cent market share in the polyester industry. The plant in Maharashtra has a total capacity of around 2.50 lakh tonnes of polyester, including staple fibre & partially-oriented yarn.
2000 - The Comp. has allotted to IFCI 2.5 lacs equity shares of Rs. 10/- each by way of conversion of Loan into equity pursuant to IFCI exercising its option for such conversion.
- Indo Rama has appointed Mr B Anantharaman as President & Chief Financial Officer of company.
2001 - Indo Rama Synthetics [Is] limited has bagged the `Best Overall Export Performance' award of Synthetic and Rayon Textiles Export Promotion Council for year 1999-2000.
- The Board of Indo Rama Synthetic limited has allotted 1.027 crore equity shares of Rs 10 each at par, aggregating Rs 10.27 crore, to IFCI by way of conversion of loan into equity.
- Indo Rama Synthetics has appointed Accenture, a leading management & consultancy firm for implementation of customer relationship management [CRMs] & information technology [ITs].
2002
-Indo Rama Synthetics signs a contract with Zimmer AG of Germany for installation of polyester staple fibre [PSFs] & textile grade chips production unit with a 500 tonne per day continuous polycondensation facility with an estimated cost of project around 490 crore.
-Mr Shailendar Tandon is appointed as the Chief Financial Officer of Indo Rama Synthetic.
-Indo Rama Synthetic signs a contract with Zimmer AG of Germany for installation of Polyester staple fibre & textile grade chip production unit.
-Indo Rama appoints Mr.Rajiv Agarwal as the President & Chief Executive Officer of the Spinning Business.
-Indo Rama increases its production capacity in several product categories.
-Indo Rama gets SRTECP Special Award for Exemplary Export Performance for the second highest overall export performance in India.
2003
-Indo Rama enters into an agreement with Pegasus Global Limited of Thailand to set up StartPet Inc.
-Indo Rama appoints Mr.Udayan G Dravid as the senior Vice-president of Marketing Segment.
-IRSL gets Mr. Shantanu Banerjee as the new Vice-President, Corporate Human Resource of Indo Rama Synthetics.
-Indo Rama Synthetics Ltd secures the National Safety Award for 2002-2003.
-Indo Rama signs tech pact with Zimmer AG for expansion
2004
-Indo Rama Synthetics signs Share Purchase Agreement with Indo Pet Thailand
-Delist from Ahmedabad Stock Exchange with effect from October 15, 2004.
2005
-Delist equity shares from Madhya Pradesh Stock Exchange [MPSEs] w.e.f. February 15, 2005.
- Delist equity shares from the Calcutta Stock Exchange Association Ltd [CSEs] w.e.f. April 25, 2005.
