History of J K Lakshmi Cement Ltd.

YEAR EVENTS 1938 - The Comp. was incorporated on 6th August, as a Public Limited Comp. at Bhopal [M.P.s]. The Comp. manufactures & deals in straw board, mill board, duplex board, straw paper, corrugated rolls, wrappers, etc. Some of trade names used are `Bhopal Straw Boards', `J.K. Mill Board'. The Comp. also manufactures high grades of writing & printing papers & cement. Cement is sold under the brand name `Lakshmi Cement'.

1939 - 15,000 Right Equity shares offered at par in prop. 1:1.

1949 - 75,000 Bonus equity shares issued in propn. 1:1.

1957 - Rate of dividend of Preference shares increased.

1959 - The Comp. embarked on a new paper mill project in Orissa under the name of J.K. Paper Mills. The Mill was commissioned in 1962.

1960 - 75,000 Pref. Shares & 12,50,000 No. of equity shares issued at par on Rights basis in prop. 1:2 & 25:3 respectively.

1965 - Partly paid Pref. and Equity shares fully called up on 27.2.1961.

1967 - In February 5,60,000 bonus equity shares issued in propn. 2:5.

1971 - 20,000-9.3% Pref. shares issued in August. 75,00,000-9.1% redeemed on 31.12.1971.

1972 - 11,30,000 bonus equity shares issued in propn. 1:2.

1973 - In June, 55,000-9.5% Pref. shares issued at par.

1974 - The Comp. holds 6,298 No. of equity shares out of 10,000 shares issued by subsidiary-Bhopal Oil and Flour Mills limited The name of this subsidiary was changed to Bhopal Udyog Ltd.

- Mayfair Finance Ltd., Sidhi Vinayak Investment Ltd., Terrestrial Finance Ltd., & Yoshodhan Investment Ltd., are wholly owned subsidiaries of Company.

1975 - Dena Bank Ltd., was amalgamated with the Comp. with effect from 1st July. Consequent upon this merger, shareholders of Dena Bank Ltd., were allotted during 1976.

- Madhya Pradesh Industries Ltd., was amalgamted with the Company effective from 1st April.

1976 - Allotted 96,000 No. of equity shares to IFCCI & 64,000 No. of equity shares to LIC [Prem. Rs 2.50 per shares] on part conversion of their loans. 4,57,984 No. of equity & 22,899-11% Pref. shares allotted without payment in cash to shareholders of Dena Bank, Ltd., on its merger.

1977 - 5,000-7.8% Pref. & 1,95,552 No. of equity shares allotted in December to members of Madhya Pradesh Industries, Ltd., on its merger in the prop. 1:1 Pref. & 1:5 Equity.

1978 - 3,16,650 No. of equity shares issued [Prem. Rs 10 per shares] in conversion of loans/debentures in 1985. 20,000-9.5% pref. shares redeemed on 2.8.1986.

1979 - The Comp. received a letter of intent to set up a cement plant near Banas, a notified backward area in Sirohi District [Rajasthans].

1981 - The Crusher plant was commissioned in December.

- During August, the Comp. issued at par 2,00,000-12% secured debentures of Rs 500 each with an option to receive 25 No. of equity shares of Rs 10 each at a premium of Rs 10 per share, per debenture in lieu of Rs 500 already paid on each debenture, such option being exercisable within a period of 90 days after the expiry of 3 years from the date of allotment of debentures.

- The entitlement of shares will stand augmented in proportion to any future bonus issue of equity shares. The debentures are redeemable in three annual instalments of Rs 100, Rs 200 & Rs 200 at the end of 10th, the 11th & the 12th years respectively from the date of allotment.

1982 - The Comp. entered into another core sector industry - Cement by setting up a cement plant known as 'Lakshmi Cement' in the 'Zero Industry' district of Sirohi [Rajasthans] present capacity of Laxmi Cement is 5.8 Lac tpa.

1983 - Effective from 15th August, the unit was closed down due to mounting losses. A tripartite settlement was arrived at with the workers regarding retrenchment.

- The Comp. issued 5,00,000-15% secured non-convertible debentures of Rs 100 each by way of rights with a view to augment the working capital requirements & partly to meet the normal capital expenditure.

- The Comp. issued 15,00,000-14% secured non-convertible debentures of Rs 100 each aggregating to Rs 15 crores by way of rights to the existing shareholders to meet part of cost of the project of Audio Magnetic Tape & expansion project at J.K. Paper Mills.

- These debentures are redeemable at a premium of Rs 5 per share in three equal instalments of Rs 35 each payable at the end of 7th, 8th & 9th years from the date of allotment.

1985 - In February, the Bhopal Mill workers resorted to agitation and work-to-rule resulting in temporary closure of factory.

1986 - The production on Machine No. 2 of Board Mill was suspended from 2nd December, due to certain technical problems.

- 52,92,175 No. of equity shares issued [Prem. Rs 10 per shares] in conversion of 10.5% bonds. 3,23,500 No. of equity shares issued [Prem. Rs 10 per shares] in conversion of loans/debentures in 1985. 20,000-9.5% Pref. shares redeemed on 2.8.1986.

1987 - The production of Machine Nos. i & III were also suspended. After reaching a tripartite settlement with the trade union, Machine Nos. II & III were closed. Machine No. 1 viz., Straw Board Machine was leased to another Comp. with effect from 1st April, 1988.

1988 - A major part of modernisation & renovation programme was completed. In addition, a new paper machine for manufacture of airmail, bond & other speciality papers was commissioned.

- A balancing-cum-modernisation scheme to double the capacity of the plant was undertaken.

- The Comp. received a letter of intent for manufacture of 60,000 tonnes per annum of Linear Alkyl Benzene [LABs] in U.P.

1989 - The Comp. undertook a scheme for pulp augmentation to augment the availability of pulp at the paper mills.

- The Comp. undertook to expand its capacity at the cement plant at Basarthgarh, district Sirohi, Rajasthan from 6 lakh TAP to 16 lakh TPA along with modernisation of some facilities.

- The Comp. proposed to launch blank audio cassettes in the market.

- The Comp. proposed to import the main raw material n-paraffin as the Government did not permit the Comp. to take recourse to own manufacture.

1990 - The Comp. issued 10,00,000-14% secured non-convertible debentures of Rs 100 each on private placement basis.

1991 - The Comp. introduced Grade 43 cement, which was well received in the market due to its high compressive strength & earlier setting time.

- A balancing-cum-augmentation scheme was under implementation.

- The Comp. in association with J.K. Industries, limited [JKILs] took over the management & rehabilitation of Central Pulp Mills, limited pursuant to an order by BIFR for rehabilitation of CPM. CPM has an installed capacity of 40,000 TPA of pulp & paper. The Comp. is to provide the necessary technical know-how & also participate financially to the said scheme.

- The Comp. is to provide the necessary technical know-how and also participate financially to the said scheme. Of the two paper machines, one was commissioned by end of 1992 while the second became operational in the latter half of 1993.

1992 - During November-December, the Comp. issued the following shares/debentures.

- [is] 60,81,517 Rights equity shares of Rs 10 each for cash at a premium of 80 per share & in proportion 3:5 [all were taken ups].

- [iis] 3,05,000 No. of equity shares of Rs 10 each were offered to employees' at a premium of Rs 80 per share on an equitable basis [all were taken ups].

- [iiis] 25,33,850 No. of equity shares of Rs 10 each issued at a premium of Rs 95 per share to Companies persons of management group on a preferential allotment basis [all were taken ups].

- [ivs] 45,61,138-14% secured partly convertible debentures of Rs 270 each as rights to equity shareholders in proportion 9 debentures : 20 No. of equity shares held [all were taken ups].

- Rs 90 of face value of each debenture was to be converted into one equity share of Rs 10 each at a premium of Rs 80 per share after six months from the date of allotment of debentures.

- Remaining Rs 180 of face value of each debenture was to be redeemed at par in three equal annual instalments of Rs 60 each on the expiry of 7th, 8th & 9th year respectively from the date of allotment of debentures.

- [vs] 38,00,949-16% non-convertible debentures of Rs 130 each with detachable warrants as rights to the equity shareholders in the proportion of 3 debentures: 8 equity shares held [all were taken ups].

- [vis] 9,50,000-16% non-convertible debentures of Rs 130 each with detachable warrants to the management group on preferential allotment basis [all were taken ups]. Each debenture was to be redeemed at par in three annual instalments of Rs 40, Rs 40 and Rs 50 at the expiry of 7th, 8th & 9th year respectively from the date of allotment of debentures.

- Each warrant entitles the holder to apply for allotment of one share of Rs 10 each at a premium of Rs 120 per share on the expiry of 36 months from the date of allotment of debentures.

1994 - A new paper machine, an imported cutter for automatic cutting and packaging of paper was commissioned.

- A new pulp mill of 300 TPD capacity based on latest international technology was to be installed. Augmentation of paper capacity by 50,000 tonnes to 1.25 lakh tonnes by upgrading some of the existing paper machines & by installation of new machine was undertaken.

- The new Cement Unit No./2 of 9 lakh tonnes capacity set up with technical assistance of Blue Circle Industries Plc U.K. was commissioned. With a view to further consolidate the cement capacity, another new cement unit No.3 was to be set up.

- The Comp. issued on 17th September, 42,13,400 No. of equity shares of Rs 10 each for cash at a premium of Rs 168 per share to the management group of J. K. Industries limited on private placement basis.

- During October, the Comp. offered 68,75,000 GDR at an issue price of US $ 8.00 representing 68,75,000 Shares.

- During July, the name of Comp. was changed from Straw Products limited to J.K. Corp. Ltd.

1995 - Capacity of paper was increased from 75,500 tonnes to 90,000 tonnes by balancing two of its paper machines. The Company proposed to increase the paper capacity from 90,000 tonnes to 1,60,000 tonnes in the second phase.

- The installation of new unit near the existing location was in advanced stage of implementation.

- The Comp. through its ongoing schemes undertook increase capacity of PSF by 10,000 TPA & the overall capacity from 28,200 tonnes to 38,100 TPA by third quarter of 1996 with a view to improve the performance of company.

- During the last quarter of year the strike/lockout in the factory was called of & normalcy was restored.

- Pursuant to a scheme of amalgamation as suggested by BIFR of OSL with the Company, 35,57,407 No. of equity shares were allotted to erstwhile shareholders in proportion 13.5 shares of OSL to 1 equity share of Company. Another 66,64,682 No. of equity shares were allotted on conversion of loans of J.K. Corp. limited at the rate of Rs 135 per share.

1996 - A new FBC Boiler was commissioned & captive power generation was enhanced which would result in lowering the cost of energy.

- The Comp. undertook to set up a project for manufacture of audio-magnetic tape at Surajpur in U.P. in technical collaboration with a reputed Japanese company.

- The Capacity was enhanced from 2,592 MRM to 3,240 MRM per annum.

- The Comp. issued the following preference shares: [as] 12,00,000-17% cumulative preference shares of Rs 100 each of which 2,00,000 shares, 5,00,000 shares, 2,00,000 shares were to be redeemed on 13.12.1977, 17.12.1997 and 16.2.1998 respectively. [bs] 1,00,000-16.5% preference of Rs 100 each were issued and there were to be redeemed at par on 3rd June, 1998. [cs] 2,00,000 17.5% preference shares of Rs 100 each were issued & there were to be redeemed at par on 7.1.1998. [cs] 3,00,000-16% cumulative preference shares of Rs 100 each were issued of which 1,00,000 shares were to be redeemed on 24.3.1998 & remaining 2,00,000 shares on 8.4.1998. [es] 2,00,000-16.75% cumulative preference shares were issued & these were to be redeemed on or after 5.2.98.

1997 - The Comp. installed the state-of-the-art new Pulp Mill with an installed capacity of 1,27,000 t.p.a.

- The J.K. Batteries Division was formed consequent upon the amalgamation of Madhya Pradesh Industries Ltd., with the Company.

- The Comp. has issued 2,00,000-14.5% cumulative preference shares of Rs 100 each.

1998 - As on 31st March, a sum of Rs 634.45 crores was outstanding against term loans from financial institutions.

- Orissa Synthetics Ltd [OSLs], which was merged with JK Corp earlier, has been severely hit by sluggish market conditions for polyester over the last two years.

- The Comp. is amongst the two largest producers of super-high-bright maplitho bomb & air mail varieties.

- J K Paper mills has received distinction of being the first paper mill in India to have been accredited with ISO 14001 environment management system & is amongst the very few similarly accredited paper mills in Asia.

- The Comp. has been continuously introducing the latest technological innovations in the paper industry directed at optimising raw material usage, reducing water usage, minimising fossil fuel usage, eliminating hazzardous waste, & reducing emissions.

- The rating of JK Corp Ltd [JKCLs] Rs.616.8 million debenture programme has been downgraded by Crisil to BBB from A-. The rating of JKCL Rs.820 million partly convertible debenture issue has also been downgraded to BBB from A.

1999 - At present, the Comp. has a manufacturing capacity of 90,000 tpa of paper, 1.27 lakh tonnes of pulp & another 47,000 tonnes of paper capacity through the Central Pulp Mills Ltd, which it controls.

- To add to the company woes, its paper mill was under lock-out for two & half months early this year following a strike by workers.

- JK Corp performance has also been adversely affected by lower realisations & increased cost of production into he cement division.

- The Comp. is also setting up a new facility for non antibiotics & intermediates at its plant at Gajraula, Uttar Pradesh.

- JK Corp has signed an MoU with a Reliance group Comp. for the divestment of Orissa Synthetics.

- Pending completion of formalities for transfer of the polyester unit, the Comp. had entered into a job conversion agreement with a Reliance group company.

- As part of its plan to concentrate on the cement division, JK Corp had earlier decided to set up one million tonne unit in Karnataka & another 1.5 million tonne unit in Madhya Pradesh.

- The Comp. has proposed a merger ratio of 1:3 with JK Udaipur Udyog as a part of its restructuring exercise.

2000 - The Comp. has informed that an illegal strike of contract labour at its paper mills at Jaykaypur, Dist. Rayagada, Orissa, had been called off on 23rd December, & production esumed at the paper mills.

2001- JK Corp Ltd [JKLs] today announced that its business restructuring plans involving the transfer of its paper business as a going concern to Central Pulp Mills Ltd [CPMs] has been completed

2002-SK Wali/ S Chouksey appointed as Whole time Directors of JK Corp.

2008

-JK Lakshmi Cement Ltd has appointed Shri. Kashi Nath Memani as Additional Director on the Board of Directors of Comp. w.e.f. August 05, 2008.

-JK Lakshmi Cement Ltd has appointed Dr. Ajay Dua as Additional Director on the Board of Directors of Company.

-JK Lakshmi Cement Ltd has appointed Ms. Amita Narain as its Nominee Director w.e.f. September 08, 2008.