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Birla Corporation Ltd. Company History and Annual Growth Details

YEAR EVENTS
1919 - The Company was incorporated at Calcutta. The main object of the
company is to Manufacture Jute goods, calcium carbide, oxygen and
acetylene gases, synthetic and viscose yarn and cement.

- The Cement division comprises Satna Cement works and Birla Vikas
Cement (new plant) at Satna (M.P.); the Birla Cement Works at
Chittorgarh (Rajasthan) and Durgapur Cement Works at Durgapur
(W. Bengal).

- The Jute Mills division comprises of Birla Jute Mill at Birlapur,
Bally Jute Mills (Bally-1) at Bally and Soorah Jute Mills
(Bally-2) at Narkeldanga, all in W. Bengal.

- The staple fibre division is known as 'Birla Synthetics' and the
calcium carbide division is known as 'Birla Carbide & Gases'.

1964 - The Oxygen & Acetylene Gas Unit was commissioned in August. The
Company also entered into an agreement with Indian Oxygen,
Calcutta, for exlusive sale of its products on principal to
principal basis.

1966 - In August, 3,98,906 Bonus Equity shares issued in prop. 1:4.

1967 - 7.86% II Pref. shares redeemed on 30th Sept., 75,000 III 9.3%
Pref. shares issued at par.

1969 - The Company entered into an agreement with Hindustan Steel, Ltd.
for the purchase of blast furnace slag from the Durgapur Steel
Plant to set up a slag-cement plant at Durgapur. The Durgapur
Slag-Cement unit comprising the fourth cement mill with an
integrated E.S.P. unit was commissioned in March 1981.

1970 - In March, 18,94,527 Bonus Equity shares issued in the prop. 1:1.

1979 - 39,89,054 Bonus Equity shares issued in prop. 1:1.

1982 - The Company undertook a comprehensive modernisation scheme of its
spinning unit phased over three years.

- Bally Jute Co. Ltd., having two units viz. Bally-1 and Bally-2
was amalgamated with the Company with effect from 1st April. As
per the scheme, a total of 1,02,370 equity shares of Rs 10 each
and 30,000 - 15% debentures of Rs 100 each were allotted to the
members of Bally Jute Co. Ltd. These debentures are redeemable
at par on March '90. The Bally-1 Jute Mill and Bally-2 Jute Mill
have come to be known as Bally Jute Mills and Soorah Jute Mill
respectively.

- 4,61,848 No. of equity shares issued on 1.4.1983 (prem. Rs 20 per
share) to financial institutions in conversion of loans/debs.
(30,186 shares to ICICI; 1,666 shares to IFCI; 1,43,333 shares to
IDBI; 1,43,333 shares to UTI and 1,43,333 shares to GIC and its
subsidiaries).

- The Company revalued the assets of its Birla Jute Mills, Birla
Carbide & Gases and Birla Synthetics, all at Birlapur, Bally Jute
Mills at Bally and Soorah Jute Mill at Narkeldanga as on 1st
April.

1983 - Two diesel generating sets of 4000 KW capacity each were
installed and commissioned at Birla Vikas Cement Unit.

- With effect from 7th February, the name of the company was
changed from the Birla Jute Mfg. Co. Ltd. to Birla Jute &
Industries, Ltd. Effective 31st March 1997, the name was again
changed from 'Birla Jute & Industries Ltd.' to Birla Corp. Ltd.

- With effect from 1st April, the Company cancelled its 23,642 - 7
1/2% preference shares of Rs 100 each and issued and allotted in
lieu thereof 23,642 - 15% secured non-convertible redeemable
debentures of Rs 100 each in the prop. of 1 debenture for every
one such preference share. These debentures are redeemable at
par on 31st March, 1990 or earlier by giving three months' prior
notice.

1984 - The captive thermal plant of 4.5 MW at Chittorgarh was
commissioned in December 1985.

- In order to raise funds for substantial expansion in the capacity
of the cement works at Chittorgarh, the Company issued 13 1/2%
convertible debentures of Rs 230 each for Rs 11.5 crores and 15%
non-convertible debentures of Rs 100 each for another Rs 8
crores, Rs 30 from each convertible debenture was converted into
3 equity shares of Rs 10 each on 1st July 1985.

- 1,43,333 No. of equity shares issued (prem. of Rs 20 per share)
to LIC on 1st September, in part conversion of loan.

1985 - 15,00,000 shares issued at par on 1st July, in conversion of
debs. 1,01,85,659 bonus equity shares issued in prop. 1:1.

1986 - A letter of intent was received for increasing the installed
capacity from 45,680 spindles to 50,000 spindles. It was
implemented during the year.

1987 - The old wet process plant was affected by poor quality of coal
but the modern dry process plant was affected by poor quality of
coal.

- The Birla Carbide & Gases unit suffered losses on account of
increase in the costs of power and carcoal coupled with sharp
decline in the realisations.

- A letter of intent was received for the setting up of a hydrogen
peroxide plant of 4,500 TPa capacity on 100% concentration basis.
Efforts were made to obtain technology and know-how for the
project.

1988 - As a part of modernisation programme, modern jute spreaders were
introduced in both Birla and Bally Mills. However, labour union
at all the three mills were opposing the modernisation programme
fearing retrenchment.

- The inferior quality of coal and labour troubles coupled with
sluggish demand for cement reduced the cement capacity
utilisation at the old plant in Chittor.

- The production at Birla Carbide & Gases unit was slightly lower
due to a six week shut down of the plant for relining of furnace
and lime kiln.

1989 - An agreement was signed on 18th February, by the company and the
Soviet Collaborators, viz. Odessa Technical Fabrics Mill and V/o
Novoexport to transfer all assets and liabilities of Bally Jute
Mills, with effect from 1st April or other date as agreed upon,
to a new Joint Venture Company, Birla Odessa Industries Ltd. in
consideration of offer of equity shares of paid-up equity share
capital of the Joint Venture Company.

- A collaboration agreement was signed by the Company with
EMPRWERKE of Germany for the manufacture of Automobile interior
Door panels based on jute fibre.

- A MOU was signed by the Company with Maruti Udyog Ltd. to supply
door panels manufactured by them.

- The Company initiated a fresh programme of modernisation.

- As the long term prospect for the manufacture of calcium carbide
in W. Bengal is not encouraging, application was made to Govt.
for conversion of the furnaces to the manufacture of
ferro-silicon.

1990 - Production of both cement and clinker and despatches of cement
were lower due to the prolonged disruption in production at the
chittor cement works and due to labour unrest.

- An application for a letter of intent for expansion at Satna was
submitted for expansion of its capacity from 15.5 lakh tonnes to
27.5 lakh tonnes.

- In February, the company allotted 20,00,000-14% secured
redeemable non-convertible debentures of 100 each to financial
institutions on private placement basis.

1991 - The break-up of the USSR, and the suspension of their purchasing
during the second half of 1991-92 was a severe blow to the
Company. But the benefits could not be reaped due to an industry
wide strike that led to closure of the mills for seven weeks.

- 11,000 high speed ring spindles, three high speed cards, five
high speed draw frames were replaced and five sets of
autolevellers were installed. In addition, four Volkman TFO
machines were also added to augment supply of knotless export
yarn.

- With a view to increase export of higher value added jute
products, the export yarn unit at Birlapur was being expanded and
quality upgraded while a new unit was being set up at Bally to
produce high quality export yarn with upto-date technology.

- Operations of the Satna plant were adversely affected due to
heavy power cuts and shortage and poor quality of coal leading to
lower production of clinker and cement.

- The Chittor plant was awarded the second best productivity award
for the year 1991-92 and 1993-94.

- With the commissioning of two modified kilns with the installed
capacity of each kiln increased to 900 TPD while energy
consumption got reduced by 25%.

- Birla Vinoleum's new PVC floor covering plant was fully
installed.

- The Company undertook to manufacture Cetaria ferro alloys in one
of the furnaces of Birla Carbide.

- India Linoleums Ltd., a subsidiary of the Company was amalgamated
with the company effective 1st April. As per the scheme, 1
ordinary share of Rs 10 each of the Company was issued for every
5 equity shares of Rs 10 each held in India Linoleum, Ltd.
Accordingly, 700 ordinary shares of Rs 10 each were allotted to
the shareholders of erstwhile India Linoleum, Ltd.

1992 - The closure of the Company's Bally Jute Mills from 26th August,
had also contributed to the low turnover and profits.

- Due to severe labour problems, Bally Jute Mills suspended
production from 26th August. The continued loss of markets in
Russia and other CIS countries was made up by increased export to
GCA markets. Bally Jute Mills reopened on 1st August 1993 with
the commissioning of sophisticated export yearn unit and high
value fabric unit.

- Production of Birla Synthetics division declined due to the
shortage in the supply of viscose staple fibre from Grasim, the
major supplier which had a closure of 60 days due to labour
problems.

- Additional autoconers, T.F.O. machines and other equipments were
commissioned for catering to the export market.

- Installation of high efficiency separators on all cement grinding
mills. The cement grinding mill was scheduled to be commissioned
by September 1993.

- The Company entered into a long term agreement with a German
linoleum manufacture for technical help in upgrading the product
and marketing it within Europe on a regular basis.

- The revival and remodelling of the second submerged arc furnace
was undertaken for the production of ferro manganese.

1995 - Production of jute declined due to the industrywide strike called
by the trade unions, shortage of fibre and acute shortage of raw
jute resulting in an unprecendented rise in prices.

- The company was setting up Dornier Looms at Birla Jute Mills to
produce Lino Hessian and other specialities to give a further
boost to the production of export-oriented value added items.

- Two DG sets of 6 MW capacity were to be installed at Satna and
Chittor to meet the power shortages.

1996 - A joint venture company 'Birla Redland Readymix Ltd.' was
incorporated with Redland PLC, UK to set up facilities for
manufacture of readymix cement concrete in India.

- The company proposed to set up a 1.2 million plant each at Satna
and Chittor.

- India Linoleum unit was demerged from the company under a scheme
of arrangement which provided for transfer of all assets and
liabilities of the India Linoleum unit to Birla-DLW Ltd. a joint
venture between the company and DLW Aktiengesellschaft of
Germany. This arrangement was effective from 1st April.

1997 - As on 31st March, the Company held the entire issued share
capital of its subsidiaries, Assam Jute Supply Co. Ltd.

- Shareholders of Birla Jute & Industries Ltd at an extra ordinary
general meeting which sought to authorise the board to change the
name of the company to Birla Corp Ltd and to restructure the
present businesses of the company.

- Shareholders of Birla Corp (the erstwhile Birla Jute &
Industries Ltd) on 16th July approved the company's proposal to
promote a 50:50 joint venture with Redland Plc of the UK, but
only after voicing their resentment over the decision.

1998 - Birla Corp Ltd. of the M P Birla group is setting up a fly
ash-based cement grinding unit at Rae Bareilly in Uttar Pradesh.

1999 - The company is using slag in the range of 50-55 per cent with a
small percentage of chemical additives to ensure strength,
durability and anti-corrosive properties of its cement.

- The company's Satna and Durgapur plants have been exporting
large quantities of cement to Bangladesh and Nepal where prices
have gone down 'substantially on account of cheaper supplies from
China and Indonesia and the prevailing prices hardly give any
contribution.'

- The company's installed capacity will go up to five million
tonnes per annum.

2000 - Due to the continuing strike by workers of the company's unit at
Birla Jute Mills, Birlapur, which commenced since March 22, the
management of the company has been constrained to declare a
lock-out of the mills with effect from April 3.

- The Company to increase the authorised share capital of the company
from Rs. 75 crores to Rs. 100 crore.

- The Company to issue ordinary shares of the company on rights basis to
the shareholders of the company in the ratio of three ordinary shares for
every 10 ordinary shares held within a price band of Rs. 20 to Rs. 24.

2002

-Makes it clear not to invest further in Cement business.

-Board approves the proposal to install power plants with a total capacity of 52 MW at its Cement Units at Satna.

2003

-Appoints Shri Jayant Kumar Ray as Nominee Director by IDBI on the board of the company, and Shri Pracheta Majumdar as the Additional Director on the Board of the company.

-Receives 6 disclosures from Shri N K Kejriwal, Director and his family members.

-Birla Corporation Ltd has informed that Shri. Ajay Saraf, Deputy General Manager, ICICI Bank Ltd., has been appointed as Nominee Director by ICICI Bank Limited in place of Shri Arnab Basu on the Board of the company.

-Birla Jute Mills and Soorah Jute Mills have gone on strike on December 29, 2003.

2004

-Birla Corporation Ltd has informed that the ordinary shares of the Company have been delisted from DSE w.e.f. December 29, 2003.

-Birla Corporation Ltd had informed regarding an indefinite strike at the company's units: Birla Jute Mills and Soorah Jute Mills. The company has now informed that following the industry-wide tripartite agreement, the workmen have agreed to call-off the strike immediately and resume normal work in the mills wef 6.00 am of January 10, 2004.

-Chairperson Smt. Priyamvada Birla passes away on July 3, 2004

2007

-Birla Corporation Ltd has appointed Shri. B B Tandon as Director on the Board of the Company to fill the casual vacancy arising out of the sad demise of Shri. P K Kaul.

2010

- Birla Corporation Ltd has informed that at the Meeting of the Board of Directors held on April 22, 2010, Shri Deepak Nayyar and Shri Mahendra Kumar Sharma have been appointed as Additional Directors of the Company.
 
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