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Ferro Alloys Corporation Ltd. Company History and Annual Growth Details

YEAR EVENTS
1955 - The company was incorporated on 27th September at M.P. The
company, manufactures standard grade high carbon ferro manganese
and other ferro alloys complementary to ferro manganese
production, such as low carbon ferro manganese, ferro silicon,
special iron phosphorous and such other ferro alloys.

- Best Minerals Ltd., is a wholly owned subsidiary of the company.

1956 - 250 No. of equity shares issued without payment in cash. 1000
Pref. and 23,100 No. of Equity shares taken up by promoters etc.
9,000 Pref. and 16,650 No. of equity shares offered at par to the
public in September.

1964 - The company undertook to implement the licence in hand for
manufacture of low carbon ferro-manganese and carbon
ferro-chrome.

1966 - The company entered into an agreement with Elektrokemisk A/s.
Oslo, Norway and A.B. Electro-Invest of Sweden for supply of
plant and machinery and for the required technical know-how to be
supplied to the company by Wagons of Sweden, one of the leading
manufacturers of low carbon ferro-chrome tin in the world.

1969 - The slag furnace was also commissioned for the manufacture of low
carbon ferro-chrome.

1977 - 1,19,695 Bonus Equity shares issued in prop. 1:1.

1978 - The company had taken on leave an licence the mini-steel plant of
Vidarbha Iron & Steel Corporation, Ltd., from 3rd October.

1980 - Early in the Company issued 75,000-11% non-convertible debentures
of Rs. 100 each as rights in the proportion of 2 debentures for
every 7 equity shares held. Only 59,901 debentures for Rs.
59,90,100 were taken up. The funds thus raised were to be
utilised exclusively for working capital purposes.

- 200 forfeited shares reissued to the company's employees (prem.
Rs. 60 per share) in April. 1,19,795 bonus No. of equity shares
allotted in October in prop. 1:2.

1981 - In September, the company set up a wholly indigenous 16 MVA
furnace at its works at Shreeramnagar for production of various
ferro alloys.

- During November, the company offered 3,00,000-13 1/2% convertible
bonds of Rs. 250 each for cash at par. Out of this, bonds
reserved for preferential allotment were (i) 10,000 bonds to the
employees, directors and business associates of the company.

- (ii) 60,000 bonds to non-resident Indians and persons of Indian
origin resident abroad, and investors from Oil Exporting
Developing Countries with repatriation rights and

- (iii) 30,000 bonds to the existing equity shareholders of the
company.

- Each bond carries an option to get redeemed Rs. 140 per bond
within a period of 3 months from the expiry of 3 years from the
date of allotment and in lieu of such amount get allotted one
equity share of Rs. 100 each of the company at a premium of Rs.
40 per share.

- The bonds carry interest at the rate of 13 1/2% per annum with an
additional 1% in any financial year if the dividend on the equity
shares in the immediately preceding financial year is 15% or
more.

- The repayment will be made at the rate of Rs. 25, Rs. 25, Rs. 25,
and Rs. 35 at the end of the 7th, 8th, 9th and 10th years
respectively from the date of allotment of bonds.

- When the option to receive equity shares is not exercised, the
repayment will be made at the rate of Rs. 60, Rs. 60, Rs. 60 and
Rs. 70 at the end of 7th, 8th, 9th and 10 years respectively from
the date of allotment of the bond.

1982 - The rate of interest was raised to 12% with effect from 1st
January.

- 25,000 - 9 1/2% II Pref. shares redeemed on 30th November.

1983 - The company's manganese ore sinter pilot plant at Shreeramnagar
was inaugurated in August.

- During March, the company set up a 100% EOU unit in Orissa for
the manufacture of 50,000 tonnes of charge chrome per annum. Two
weeks after the plant was commissioned, Orissa Electricity Board
imposed a 90% power cut and consequently the plant had to be shut
down. The plant was restarted in July.

- In order to augment the long-term resources for working capital
requirements, the company issued in September, 6,00,000-15%
secured non-convertible debentures of Rs. 100 each as rights to
the resident Indian equity shareholders and to holders of 11%
rights mortgage debentures.

1984 - The chrome ore beneficiation plant was commissioned in March.
The agglomeration plant for making briquettes was commissioned in
November.

- The secondary steel making unit and new reheating furnace in the
rolling mill were commissioned.

- 1,92,877 No. of equity shares issued (prem. Rs. 40 per share) on
conversion of 13 1/2% bonds (1,91,217 shares and 1,660 shares in
1985-86).

1985 - The gas cleaning plant in February.

1986 - The metallic recovery plant was commissioned in September.

- A 24' rolling mill and 8.5' radius bloom caster were being
installed to improve the unit's working. In May the induction
furnace was commissioned.

- All the III Pref. shares redeemed on 30th December.

1987 - The company diverted its production activity to the manufacture
of high-value products in view of the heavy reduction in power
supply necessitating reduction in production of silico manganese,
ferro silicon etc.

1989 - However, the profitability was adversely affected mainly due to
erratic power supply, general increase in the costs of power,
labour and raw materials and stiff competition.

1990 - In the ferro alloys division, the furnace lost 8160 hrs of power
supply due to power cuts and load shedding. In addition, the
fourth furnace was closed from December to March 1991 due to
break - down of transformer.

- Due to relining of the furnace which was taken up after 7 years
of operation. Severe load sheddings and frequent power trippings
also lead to unsatisfactory performance.

- A captive power plant with a capacity of 21 MW was being set up.

- The Vacuum Degassing and Vacuum Oxygen Decarburization facilities
in the steel melting shop were commissioned.

- 27,61,310 No. of equity shares of Rs. 10 each offered as rights
(prem. Rs. 40 per share; in prop. 5 shares for each share of Rs.
100) 4,11,353 additional shares allotted to retain
oversubscription. Existing shares of Rs. 100 subdivided on 20th
February. Another 1,38,060 shares of Rs. 10 each offered to the
employees (prem. Rs. 40 per share) but only 39,300 shares taken
up. Allotment of 2,842 shares pending.

1991 - Despite these favourable results, the overall working resulted in
losses due to reasons such as hike in cost of production of ferro
manganese, ferro chrome etc., and power cut to the extent of 50%.
Moreover, closure of furnace No. 1 for about 2 1/2 months,
furnace No. 4 for a month for repair and maintenance work and
closure of furnace No. 2 by virtue of transformer failure etc.,
added to the problems.

1992 - With the installation of captive power plants in the factories
both at Shreeramnagar in A.P. and at Randia in Orissa, the
chronic power problem shortage has been mitigated.

- The rolling mill had rolled sections of 160 mm dia first time and
125 mm dia for the seamless applications.

1993 - The company suffered loss due to severe competition both in the
domestic and international markets, lower realisation and heavy
burden of interest charges.

- 52,40,750 Rights equity shares issued (prop. 3:5; prem. Rs. 25)
of these 8,974 shares kept in abeyance.

1994 - The agreement was made between the company and Vidarbha Iron &
Steel Corporation.

- In terms of the rehabilitation package, the company issued Rs. 34
crores zero interest debentures to the financial institutions
redeemable in 4 quarterly instalments commencing from 15.5.1996.
The option for conversion into equity shares of the company at
par to be exercised on or before 31.12.1996.

1995 - Despite power cuts, load shedding and furnace shut downs.
Production was higher over previous year.

- 68,85,621 No. of equity shares of Rs. 10 each at par allotted on
conversion of 0% OFCD.

1996 - Production and sales declined marginally due to shut down of
furnace for repair.

1997 - Overall production and sales declined due to depressed market
conditions.

- The Company's networth stands fully eroded due to heavy losses
and accordingly, the company was required to make reference to
BIFR as per the provisions of Section 15 of the Sick Industrial
Companies Act, 1985.

1998 - During the year 1997-98, the working of the Company was once again
adversely affected by various factors

- The Furnace in the Steel Division was closed for 53 days during the year for want of
orders as well as scrap and due to transporters' strike.

- The Company has issued and allotted 2,64,416 - 20% Secured Redeemable Non-convertible
Debentures of Rs. 100/- each on 22nd November, 1997 to The Industrial Credit & Investment
Corporation of India Limited as and by way of conversion of certain outstanding payments
aggregating to Rs. 2,64,41,600/- payable to them by the Company.

- The Company has received EEPC All-India Award for export excellence for
the year 1996-97 in the category 'Prime Metal - Ferrous & Non-ferrous Exporters - Non-SSI' from
Engineering Export Promotion Council.

- The Company has also been nominated as winner of the first prize for the outstanding export
performance during 1996-97 for the product group category 'Minerals & Ferro Alloys' by the
Confederation of Export Units.

- Shri Jamnadhar Mor, Shri M.B. Thaker and Shri R.K. Saraf, Directors of the Company, retire
by rotation and, being eligible, offer themselves for re-election.

2000 - The Company has lifted the lock out at its Andhra Pradesh plant
with effect from June 12. It was declared on March 19, 2000.




2004

-The Board for Industrial and Financial Reconstruction (BIFR) has approved a rehabilitation scheme for the ailing Ferro Alloys Corporation Ltd

2005

-Ferro Alloys Corporation enters into JV with PMCI

2007

-Ferro Alloys Corporation Ltd has informed that Shri. R K Saraf a Director of the Company has been appointed as Chairman & Managing Director of the Company w.e.f. June 29, 2007 by the Board of Directors of the Company at its meeting held on June 29, 2007.
 
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