History of Texmaco Ltd.
YEAR EVENTS 1939 - The Comp. was incorporated on 4th August at Calcutta. The main objective of Comp. is to manufacture of large variety of items. Its Textile Machinery Division manufactures machinery for textile mills. Its Boiler & Heavy Engineering Division manufacturers boilers, super heaters, economisers, chimneys, pressure vessels, bridges & structurals, equipment for chemicals, paper, cement, coke oven & iron & steel factories, coal & other solid material handling & conveying plants, railways, railway rolling stocks. Steel Foundry Division makes castings for railway equipment, sugar mill machinery etc. On the structural side, the Comp. had been engaged in the supply of equipment for high pressure boilers for well-known DVC thermal power project. The Comp. is manufacturing No. 3 Ward Capstan lathes & is trying to start manufacture of No. 7.
1946 - 25,000 Right Redeemable Pref. shares issued at par in prop. 5:63 irrespective of class. 3,00,000 Right shares issued at par in prop. 1:1.
1955 - 9,00,000 Rights Equity shares of Rs. 10 each issued at par in the prop. 3:2 Equity.
1959 - 1,00,000 - 6 1/4% Right Pref. shares issued at par in the prop. 1:10 Equity shares or 10:19 Pref. shares. The three types of Pref. shares rank pari passu as regards payment of dividend and return of capital.
1963 - The Comp. entered into a collaboration agreement with Zinser Textilemaschinen of West Germany for manufacture of high quality ring frames. In 1970, Government approved the Company's collaboraton agreement with M/s. Howa Machinery limited of Japan for the manufacture of high speed carding engines, simplex & draw frames.
1971 - 8,544 8.928% Pref. shares redeemed on 30.9.1991. Dividend rate on 8.928% Pref. shares raised to 9.3% new Pref. shares issued at par. These shares are redeemable on 31.12.1980.
1972 - The Company proposal for foreign collaboration with H.W. Ward and Co., for manufacture of 2-Ds capstan lathe was approved by Government.
1975 - It was decided to utilise the spare capacity for manufacture of jute machinery for new company, Swadeshi Jute Machinery Corporation Ltd., floated jointly by Comp. & Star Textile Engineering Works Ltd.
1977 - 380-9.3% Pref. shares redeemed in 1972 & 50-9.3% Pref. shares redeemed in 1973. 91,446-9.3% old Pref. shares redeemed - 380 shares in 1972, 50 shares in 1973 & 91,016 shares.
1979 - The Comp. acquired fixed assets of factory owned by Modern India Construction Co., limited [MICCOs], located at B.T. Road, Sukchar, 24-Parganas & named it as Sodepur Works. This acquisition included the industrial licence of MICCO for structurals, chemical machinery, producer gas plan & gas cleaning plant.
1980 - Another agreement was concluded with Howa Machinery Ltd., Japan for manufacture of their latest high-speed frames.
- The Comp. obtained a letter of intent for manufacture of cement mill machinery.
1981 - With effect from 1st April, Comp. took over the units owned by The Birla Cotton Spg. and Wvg. Mills limited [BCMs], comprising of a composite textile mill at Delhi, a textile spinning mill at Kathua [J and Ks], four ginning factories & oil mills situated in the State of Punjab, Rajasthan & Haryana & dairy at Sahadra, Delhi. These units were acquired by Comp. under a Scheme of Arrangement approved by shareholders, as partially amended by Department of Comp. Affairs, Government of Indian and duly sanctioned by Hon'ble High Courts of Calcutta & Delhi.
- In consideration of such takeover, the Comp. had allotted to BCM 3,75,000 No. of equity shares of Rs. 10 each, credited as fully paid-up & ranking apri passu in all respects with the existing shares of texmaco, provided that they would not be eligible for any dividend for year ended 31st December.
- The Birla Cotton Spg. and Wvg. Mills limited [BCMs] company, the mill at Delhi having been was renamed `Birla Textiles'.
- 3,75,000 shares allotted without payment in cash to The Birla Cotton Spg. and Wvg. Mills, limited as consideration for take over of some of its units.
1982 - Sodepur Works-unit No. 3 was geared for manufacture of specialised items of pressure vessels, heat exchangers & other chemical plant machinery.
- In April the Comp. acquired its first ship at a price of U.S. $12.6 million. It is a second-hand bulk carrier of 27,330 DWT, built in 1977 by Mitsui Engineering and Shipbuilding Co. Ltd., Osaka, Japan & was named 'RENUSAGAR'. In 1983, 1984 & 1985, the operations suffered due to uneconomic freight rates.
1983 - Further technical collaboration was entered into with M/s. Howa Machinery Ltd., of Japan for manufacture of their latest high production cards.
- The Comp. entered into a technical collaboration agreement with Toyoda Automatic Loom Works limited of Japan for manufacture of their latest model of long length ring frame. The Comp. also took up in hand the project for manufacture of high production cards in collaboration with Howa Machinery Ltd., Japan.
- The Comp. concluded a foreign technical collaboration agreement.
- In March the Comp. acquired the fixed assets of Panihati works of Oriental Machinery and Civil Construction limited [OMCCLs], which remained closed since January 1979. A rehabilitation programme was being taken up.
1984 - The Comp. also applied for permission to further enhance the licensed capacity to 1,035 nos. which was granted.
- In spite of tripartite settlement in May 1983, the labour problems continued resulting in another lockout from 10th January, which lasted upto 10th April.
- The Comp. had taken up a modernisation programme entailing a capital outlay of Rs. 560 lakhs for spinning & processing divisions.
- The Comp. formed a joint venture Comp. under the name Texpro Construction Co., Ltd., in collaboration with the Protaxa Group of Mexco for onshore construction activities like pipe laying, etc.
- The Comp. with West Bengal Electronics Industry Development Corporation limited [WEBELs] promoted jointly a Comp. for the manufacture of telephone instruments [digital types] & store programmable control private automatic branch exchange [PABXs] & accessories. The new joint venture Comp. under the name & style WEBEL-TEXMACO ELECTRONICS LTD. was incorporated in 1985. However, the Comp. had to abandon this project due to resource constraints.
1985 - A working arrangement was entered into with Upper Ganges Sugar & Industries limited [UGSLs], under which the spinning & processing division of Birla Textiles unit as well as the 4 ginning factories would be operated by UGSL for a period of 2 years with effect from 1st September.
- Manufacture of diesel forklift trucks in technical collaboration with M/s. Lansing Ltd., U.K. Commenced.
- The fixed assets of engineering units of Comp. were revalued as on 31st December, & the net surplus of Rs. 3,484.58 lakhs arising out of this was credited to capital reserves.
1986 - Technical collaboration agreements were entered into with wallsend Boilers Ltd., U.K. for manufacture of fluidised bed combustion [FBCs] steel boilers & with Combustion Systems, Ltd., U.K. for manufacturing FBC water tube boilers.
- It was proposed to take up the manufacture of trucks with capacities upto 40 tonnes.
1987 - Capacity under-utilisation continued to be 25% & the Comp. proposed to shift its focus to the exports market. Negotiation were on with the collaborators for a suitable tie-up for third country exports. Necessary steps were taken for modernisation of its production technology & other facilities to improve the international competitiveness.
- The working of Cement division was severely affected by massive power cuts ranging between 40% to 80% between March to March 1988.
- With an option to UGSL for further extension of period by 2 years. The working arrangement with Upper Ganges Sugar and Industries Ltd., for operation of division of Birla textiles & 4 ginning & pressing factories was extended for a period of 5 years effective from 1st July.
- For Birla Textiles, Rs. 20 lakhs per season for 4 ginning and pressing factories.
- During the year, the first 40 tonne diesel forklift truck was delivered to the Tuticorin Port Trust. Panihati Division was adversely affected for lack of orders from Indian Railways for fabricated points & crossings.
- The Comp. was promoted jointly with PICUP & U.P. State Textiles Corporation Ltd., a public limited Comp. in the assisted sector, in the name of Texmaco [UPs] Ltd., for setting up a project for manufacture of textile machinery in a backward district of U.P. In 1983 in view of bleak prospects of textile machinery, it was decided to extend the range of manufacture of this Comp. to cover coal handling & washery plants, mining machinery & chemical & chemical plant machinery.
1988 - The improved performance was attributed to increase in production & turnover of engineering, boiler division & the sugar mill machinery division. However, the overall working was affected by poor performance of cement division on Acc. of massive power cuts suffered by division.
- The Comp. proposed to take up production of some special wagons for defence.
1989 - The textile machinery division entered into a technical collaboration with Howa Machinery, Ltd., Japan for the manufacture of combers.
- The Comp. entered into a technical collaboration agreement with Salzgitter Maschinenbau GmbH, West Germany, for manufacture of sugar centrifugals. Government approval was awaited.
- The unit received Industrial Licences for manufacture of vibratory compaction equipments & machinery & equipments for the construction & maintenance of Railway tracks.
- However, the working results were adversely affected due to sharp rise in the cost of inputs coupled with poor value realization caused by a production glut in South India.
- The Comp. came under the provisions of Sick Industrial Companies [Sp. Provisionss] Act, 1985 & a reference was made to the Board for Industrial & Financial Reconstruction [BIFRs].
1990 - The shortage of free-supply mounted wheelsets caused a bottleneck in the regular flow of production.
- The Comp. received a letter of intent for manufacture of longwall face mining equipment.
- However, the drastic power cuts forced the cement division to operate plant on DG sets which raised the Unit cost of power.
- The freight market was depressed due to Gulf-War. Consequently, the working of shipping division adversely affected.
- 7,07,289 No. of equity shares issued at par in part conversion of loans [2,73,289 shares to financial institutions & 4,34,000 shares to bodies corporate.
1991 - The Comp. received Government approval for technical collaboration with Standard Car Truck Co. of USA for manufacture of modern freight bogies for wagons.
- The Comp. received Government approval for technical collaboration with CDFI, France for manufacture of long-wall face mining equipment.
- The Comp. undertook to set up a cement plant. Consultancy services for project were secured from Holtec Engineers Pvt. Ltd.
- During the year, additional DG set was installed.
- Shipping division was hit by devaluation of Indian Rupee & suffered substantial increase in its liability on capital Acc. for outstanding Eurodollar loan & funded interest.
- BIFR had formulated a draft scheme for rehabilitation of the cement division which was substantially at variance with the proposal submitted by Operating Agency [ICICIs]. The Company had requested the BIFR to reconsider the draft scheme in consonance with the Operating Agencies' report.
1992 - Entered into a working arrangement with Zuari Agro Chemicals Ltd. for running the cement factory at Yerranguntla.
- The working of Shipping division was affected due to the depression in the freight market & recessionary conditions.
1994 - As per MOU signed on 28.10.94, the unit was transferred to Zuari Agro. Moreover, working of Company major division producing Wagon was severly affected on Acc. of drastic cut in procurement of wagons by Railway Board.
1995 - The off-take of machinery against confirmed orders was affected by prevailing liquidity crunch.
1996 - Upper Ganges & Sugar Industries Ltd., have decided to carry on the business in partnerhsip with Gobind Sugar Mills Ltd., and Sutlej Cotton Mills, limited Birla textiles, Delhi Unit of the Comp. was closed down with effect from 30th November, as per Supreme Court Order & the existing working arrangement with the partnership firm comprising Hindustan Times Ltd.
- The Comp. decided to join the partnership for with 5% share along with Hindustan Times Ltd., Upper Ganges Sugar limited & Sutlej Industries limited to relocate Birla Textiles at Baddi, Himachal Pradesh.
- 25,81089 Right Equity shares issued [Prem. Rs. 50s] [Prop. 1:1s]
1997 - Due to persistent sluggish demand the Comp. was forced to cut down its production & restrict its range to only preparatory machines viz. cardings, draw frames & simplex frames.
1998 - Pref. shares has been redeemed during the year.
2003-Agreement with M/s K Raheja Group for construction & development of companys leasehold property at Worli, Mumbai.
2004
-Texmaco bags order from NTPC
2006 -Texmaco secures order from Container Corporation of India
2009
- The Comp. has splits its face value from Rs10/- to Rs1/-.
