History of Zuari Industries Ltd
YEAR EVENTS 1967 - The Comp. was incorporated on 12th May. It was promoted by Birla Gwalior [Ps] Ltd., & Armour and Co., Chicago, U.S.A. The Comp. manufacture fertilisers & allied products.
1968 - A fresh collaboration agreement was signed with the United States Steel Corporation on 1st November, under which the scope of the project was enhanced to include the manufacture of compound fertilisers [28:28:0s] as well.
1977 - 160 No. of equity shares subscribed for by signatories to the Memorandum of Association & 55,57,340 No. of equity shares subscribed for in cash by institutional promoters of the Comp. [United State Steel Corporation - 37,72,500; Sutlej Cotton Mills - 10,00,000 Pilani Investment Corporation - 2,00,000 Birla Education Trust - 1,80,000; Century Spg. and Mfg. Co. 1,50,000; Gwalior Rayon Silk Mfg. Co. 1,10,000; Birla Bombay Pvt. limited - 70,000; & Jiyajeerao Cotton Mills - 40,000s].
- 4,12,500 Pref. Shares & 68,70,000 No. of Equity shares issued through prospectus in May 1970. Out of issue, 9,14,964 No. of equity shares reserved for foreign collaborators [7,27,500 for United States Steel Corpn., & 1,87,464 for Armour and Co., U.S.A.s] for allotment against plant & machinery & technical know-how, etc.; 37,536 No. of equity shares issued to Armour & Co., against cash subscription; 33,30,000 No. of equity shares issued to foreign financial institutions [23,92,500 to International Financial Corpn. Washington; 7,50,000 to Bank of America, N.Y. & 1,87,500 to First International Finance Corpn. Chicagos] against cash subscription; 125 Pref. & 5,000 No. of equity shares issued for Communidade of Sancoale of Goa. The balance of 4,12,375 Pref. & 25,82,500 No. of equity shares offered for public subscription. The Pref. shares are redeemable on or after 8th July, 1982 after giving 3 months' notice.
1984 - A letter of intent was received to set up a fertiliser complex comprising of an ammonia plant & an urea plant with capacities of 1,350 tonnes & 2,250 tonnes per day respectively based on off-shore gas at Sawai Madhopur, Rajasthan. For this purpose, the Comp. promoted a new Comp. under the name & style of Aravali Fetilisers Ltd.
1985 - AFL was incorporated on 7th May, 1985 & the Certificate of Commencement of Business was obtained on 18th July. Due to the new guidelines fixed by Government, the original contract with Snamprogetti SPA had to be re-negotiated.
- Rate of Pref. dividend raised to 15% effective from 11.7.1985 and redemption date extended to 10.7.1992/95. 10,310 Pref. shares belonging to dissenting shareholders redeemed.
1986 - The Comp. issued 5,00,000 - 15% redeemable non-convertible debentures of Rs 100 each on private placement basis to Army Group Insurance Fund. These debentures are redeemable at a premium of Rs 5 per debenture at the expiry of 7th year from the date of allotment.
1989 - Application for financial assistance for cement project was submitted to IDBI. Necessary steps were taken to get the validity period of letter of intent extended.
- The Comp. issued 7,00,000 - 14% secured redeemable non-convertible debentures of Rs 100 each on private placement basis with financial institutions. These debentures are to be redeemed at a premium of Rs 5 per debenture on the expiry of 7th year from the date of allotment of debentures i.e. on 18th September, 1996.
1990 - A new Comp. in the name of `Banas Cement Ltd.' was incorporated to implement the project.
- Effective from 15th November, the CFCL ceased to be a subsidiary of Comp. due to increase in the paid-up capital of CFCL.
- The Comp. made an application to set up a sugar factory in Karnataka with cane crushing capacity of 2,500 tpa & investment of Rs 35.0 crores. Clearance from Central & State Government, was awaited. In 1992, clearance was received from the State Government. The Comp. availed the letter of Intent.
- With the approval of Indian Government & the World Bank, James Chemical Engineering, a prominent firm of U.S.A., consultants, were appointed to make a study of existing plant & suggest ways & means of achieving an increase of 10% in the capacity.
1992 - The Comp. proposed to set up an argon recovery & purification plant within the existing complex at Goa.
1993 - During the year, for first time, the Comp. launched sale of potash for direct application to the farmers. 'Biophos' an environment friendly product launched to enhance phosphorus use efficiency was well received. High quality seeds of various crops in the brand name 'Jaikisaan' was launched.
- The Comp. entered into an agreement with Texmaco Ltd for running & operating their Cement unit at Yerraguntla, Andhra Pradesh effective 1st January, 1994.
1994 - The Comp. formed a wholly owned subsidiary in the name of Zuari Leasing and Finance Corporation Ltd.
- The Comp. set up a joint venture in the name of Zuari Seeds Ltd., with Institute of Field and Vegetable Crops and KOP Investments, Cyprus [IFVCs] on 50:50 basis for production and marketing of hybrid seeds.
- 7,00,000 Shares allotted on private placement basis.
1995 - The Comp. commenced marketing of single super phosphate under the brand name 'Jai Kisaan Superphos' making the existing range of products most comprehensive.
- 'Bioneem' an eco friendly neem based pesticide launched during January.
- Two hybrid seeds of sunflower were developed with Institute of Field & Vegetable cups & KOP Investments.
- Argon recovering plant was commissioned on 9th May, and registered 51% capacity.
1996 - The Capacity utilisation of Ammonia, Urea, NPX & DAP plants was maintained at higher levels.
- With view to energy saving, the Comp. undertook to remove pneumatic instruments in a phased manner to be replaced by microprocessor based control systems. In the cement divisions, fluxo was replaced by air lift pump & elevator and belt combination for transport of cement from mill out let to cement silo.
- The Comp. undertook to expand the existing di ammonium phosphate plant from 500 to 1100 tpa at a cost of Rs 18.67 crores based on technology supplied by Grand Parroise [GPs] of France. Also expansion of its NPK plant was undertaken to increase the capacity from 500 to 1100 tap at a cost of Rs 46.18 crores based on technology from Grand Parroise of France.
- Approval was received from requisite authorities for amalgamation of Indian Furniture Products limited [IFPs] with the Comp. IFP is an EOU with facilities to manufacture ready to assemble furniture at Kakalur, Tamil Nadu.
- IFP had entered into a technical and financial collaboration agreement with M/s. Seribo France, one of pioneers in manufacturing & marketing reading to assemble furniture.
- Subject to necessary approvals being obtained the company proposed to issue 26252800 rights equity shares in prop. 1:1.
- Pref. shares redeemed. Authorised equity capital increased.
1997 - To ensure the smooth & continuous production of NPK/DAP plants, the Comp. has decided to set up additional captive power capacity & placed an order with M/s. Wartsila NSD, Finland for supply & erection of 6 MW DG set at a total cost of Rs 8.86 crores.
- 131,15,210 rights shares issued in prop. 1:1. 31,98,368 shares issued to erstwhile Indian Furniture Products limited on its amalgamation with the Company.
1998 - With effect from 12th February, the name of Comp. was changed to Zuari Industries limited from Zuari Agro Chemicals Ltd to represent all the activities of company.
- For the first time among Indian corporates, Zuari Leasing and Finance Corporation, a subsidiary of Zuari Industries of the K K Birla group, has disclosed in its balance sheet that it has paid Rs.15.69 lakh as tax to the Income-Tax Department under the Voluntary Disclosure of Income Scheme [VDISs].
- Zuari Industries limited said that its operations have been affected because of strike by contract labourers in its packing & despatch section at its fertiliser division in Goa.
- Gautier India Ltd, a 50:50 joint venture between Groupe Seribo, France & Zuari Industries Ltd, will launch an exclusive range of entertainment furniture in India.
1999 - Zuari Industries, the K.K. Birla group company, is tying up with Groupe Seribo of France to forge a 50:50 joint venture which will market state-of-the art furniture products manufactured at its Chennai factory.
- The Comp. undertook further expansion of complex fertiliser capacities to 3.30 lakh tonnes per annum from 1.50 lakh tonnes per annum at Rs. 41.70 crores & installation of captive power generation facilities.
- Leading the race is Gautier India Ltd, a furniture manufacturing Comp. set up by Zuari Industries Ltd, belonging to the KK Birla Group, in collaboration with Groupe Seribo of France.
- Zuari Industries was able to present the record of its transactions, the faster was the collection process from the government.
- The Comp. also has interests in furniture & cement manufacturing. For fertilizers the Comp. has tied up with Grand Parroise of France to improve quality of its products like Urea, Ammonia, & Diammonium Phosphate [DAPs].
2000 - The Italcementi Group & Zuari Industries Ltd [ZILs] have reached an agreement to create a 50:50 joint venture company, which will take over the cement activities of ZIL.
- The Comp. proposes to enter into a joint venture agreement with Ciments Francais & Italcementi Group Comp. for carrying on the cement business as a separate joint venture company.
- The Comp. has signed an agreement with Italcementi Spa, Italy on 2nd August, for carrying on its cement business as a joint venture.
- Indian Furniture Products, a division of Zuari Industries of K K Birla group, has launched its Zuari furniture range in Bangalore.
2001 - The cement division of Rs 4000 crore KK Birla group Comp. Zuari Industries, has been hived off into a separate Comp. called Zuari Cement Ltd.
- The Comp. is signing an MoU for acquiring 76 per cent stake in Greentech Seeds International Pvt. limited Bangalore, which is in the business of production & marketing of hybrid seeds of vegetables & other crops.
- The Comp. has acquired themajority stake in GreenTech Seeds International Pvt limited & GSIPL has become the subsidiary of company.
2002 -Zuari Maroc Phosphates becomes subsidiary of Zuari Industries -Paradeep Phosphates becomes a subsidiary of Zuari Industries
-AF Ferguson and Co [AFFs] has withdrawn as auditor for Zuari Industries limited 2003 -Board approved the issue of Cumulative Redeemable Preference Shares aggregating to Rs 1000 million instead of Rs 2000 million approved earlier.
-- The Zuari Cement unit near Yerraguntla in Cudappah district was closed down by management due to labour unrest
2007
-Zuari Industries Ltd has entered into Joint Venture Agreement with Israel Chemicals Ltd for establishment of water soluble NPK Fertiliser Plant with an initial capacity of 10,000 tonnes per year
-Zuari Industries Ltd has appointed Mr. J N Godbole as an Additional Director of Comp. with effect from August 01, 2007.
