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Finolex Industries Ltd. Company History and Annual Growth Details

1981

- The company was incorporated on 28th March, in Maharashtra as a
private limited company and was converted into a public limited company
on 1st December, 1988. It manufactures PVC Pipes and fittings. It was
promoted by P.P. Chhabria and his associates. The company acquired a
manufacturing plant at MIDC Chinchwad, Pune and started commercial
production of PVC pipes in May 1981.

1983

- 3,67,650 shares issued without payment in cash to members of Finolex
Plastics Pvt. Ltd. on its merger.

1987

- Letter of Intent was obtained for the manufacture of 1,00,000 tonnes
per annum of PVC resin.

- The Company entered into a technical collaboration agreement with
Uhde GmbH, West Germany for licensing and technical know-how of Hoechst
AGs process for manufacture of PVC resins and for provision of basic
engineering.

- 8,42,919 Rights shares issued at par in prop. 1.5:1.

1989

- With the public issue of equity shares in May, the Company offered
3,50,000-14% secured redeemable partly convertible debentures of Rs 300
each of which 17,500 debentures were offered on preferential basis to
employees (including Indian working directors)/workers on an equitable
basis (only 3,070 debentures taken up). 3,32,500 debentures together
with the unsubscribed 14,430 debentures of the employees' quota were
offered and allotted to the Indian Public. Additional 52,500
debentures were allotted to retain oversubscription.

- Conversion of debentures was to take place at two stages viz., (a) A
portion of Rs 50 of the face value of each debenture into 5 No. of
equity shares at par (Part 'A') at the end of 6 months from the date of
allotment of the debentures and (b) a portion of Rs 100 of the face
value of each debenture into 10 No. of equity shares of Rs 10 each at
par at the end of the second year from the date of allotment of the
debentures. The non-convertible part of Rs 150 of each debenture would
be redeemed at par on the expiry of 9th year from the date of allotment
of debentures.

- 17,50,000 shares issued at par out of which 87,500 shares reserved
for preferential allotment to employees, etc. but only 37,600 shares
taken up. The balance 16,62,500 shares, along with 49,900 shares not
taken up by employees, were offered to the public in May 1990.
Additional 2,62,500 shares allotted to public to retain
oversubscription. 55,11,093 bonus shares allotted in prop. 3.907:1 to
shareholders prior to the public issue.

- Company has effected an arrangement with LIC of India under group
gratuity-cum-life assurance scheme so as to cover future payment of
gratuity to retiring employees.

1990

- During September-October, the Company offered 27,36,667-14% secured
redeemable convertible debentures of Rs 150 each of which the following
debentures were reserved for allotment on a preferential basis: (i)
10,73,333 debentures to holders of 14% debentures issued in 1989; (ii)
10,40,000 debentures to shareholders of Finolex Cables, Ltd.; (iii)
6,66,667 debentures to NRIs on repatriation basis; (iv) 6,50,000
debentures to Financial Institutions/Mutual Funds and (v) 5,33,333
debentures to employees of the Company.

- The unsubscribed portion of 10,35,799 debentures of the preferential
quota was offered along with the public issue of 39,66,667 debentures.
Additional 11,89,500 debentures were offered to retain over
subscription. These debentures were allotted as follows: 90,68,934 on
30.11.90, 46,600 on 11.1.1991 and 3,966 on 23.2.1991.

- Rs 60 of the face value of each debenture was compulsorily and
automatically converted into 4 Equity shares of Rs 10 each at a premium
of Rs 5 per share at the end of 18 months from the date of allotment of
debentures.

- The remaining Rs 90 of the face value of each debenture was to be
redeemed at par on the expiry of 9 years from the date of allotment of
debentures.

- Simultaneous to the rights issue in September, the Company offered
82,00,000-14% secured redeemable non-convertible debentures of Rs 100
each on rights basis to the existing equity shareholders in the ratio
of 75 non-convertible debentures for every 100 shares held. Only
46,661 debentures were taken up. Out of the balance 81,53,339
debentures, 78,39,095 debentures devolved on the underwriters.
Allotment of 3,14,244 non-convertible debentures were kept in abeyance
pursuant to Court orders.

- As per the terms of issue, each debenture of Rs 100 will be redeemed
in three equal instalments at a premium of 5% at the end of 6th, 7th
and 8th year from the date of allotment.

1991

- 40,25,000 shares allotted at par on 2nd conversion of 14% convertible
debentures.

- To part finance its PVC Resin Project ('the project'). The company
had made , during the year under review, right issue and public issue
of 14% Secured Redeemable Convertible Debentures of Rs. 150/- each and
14% Secured Redeemable Non-convertible Debenture of Rs.100/- each vide
Letter of Offer dated 8th September, 1990 and Prospectus dated 10th
August, 1990.

- The public and rights issues of Convertible Debentures were
over-subscribed and the Company retained over-subscription to the
extent of 15% of the issue size as permitted by the Controller of
Capital Issues ('CCI'). The allotment of 1,21,61,917 Convertible
Debentures was finalised in consultation with Pune Stock Exchange
Limited.

- The Company allotted 78,85,756 Non-Convertible Debentures.

- The Company signed during the year under review loan agreements with
the Industrial Credit & Investment Corporation of Inida Limited being
Lead Financial Institution for DM 29.553 million and for Rs 859 lakh
(equivalent to DM 9.990) for the Project.

- The Company has signed Bridge Loan Agreement with industrial
Development Bank of India for Rs 475 lakh which is due for repayment
shortly.

- Rs. 100/- of the face value of the each of 14% Secured Redeemable
Convertible Debentures (1989 series) have been converted into 10 Equity
Share of Rs. 10/- each at par on 10th July.

- The non-convertible part of Rs. 150/- each of the aforesaid Debenture
(1989 series) will be redeemed in full at par on the expiry of nine
years (i.e. 10th July 1998) from the date of allotment of the
Debentures.

- Each of 14% Secured fully Convertible Debenture of Rs. 100/- each
shall be converted into such number of Equity Share of Rs. 10/- each,
credited as fully paid-up, as decided by the Controller of Capital
Issue between 2nd and 4th years from the date of allotment of the said
Debenture namely 30th January 1990.

- Rs. 60/- out of the face value of Rs. 150/- each of 14% Secured
Redeemable Convertible Debenture (1990 series) will be converted into
four Equity Share of Rs. 10/- each at a premium of Rs. 5/- per share on
30th May, 1992.

- The non-convertible part of Rs. 90/- each of the afore said Debenture
(1990 series) will be redeemed in full at par on the expiry of nine
years from the date of allotment of the Debenture (i.e. on 30th
November, 1999).

- 14% Secured Redeemable Convertible Debenture (1989 series ) and 14%
Fully Convertible Debenture will be further secured by creating
additional security as and by way of second and subservient mortgage
and charge on the immovable and movable properties of the company and
also such other properties which the company may acquire infuture in
favour of the Trustees in such a manner and to such an extent as the
Board of Director and the Trustees may agree upon.

- 14% Secured Redeemable Convertible Debenture (1990 series) will be
further secured by creating additional security as and by way of second
and subservient mortgage and charge on the immovable and movable
properties of the companies relating to its project for the manufacture
of 1,00,000 tpa of Poly Vinyl Chloride (PVC) Resin and also on such
other properties of the project which the company may acquire in future
, in favour of the Trustees, in such a form and to such an extent as
the Board of Directors and the Trustees may agree upon.

- 14% Secured Redeemable Non-Convertible Debenture will be further
secured by creating additional security by way of such a mortgage and
charge on the immovable and movable properties of the companies
relating to its project for the manufacture of 1,00,000 tpa of poly
vinyl chloride (PVC) Resin and also on such other properties of the
project which the company may acquire in future , in favour of the
Trustee in such a form and to such an extent as the Board of Directors
and the Trustees may agree upon.

1992

- The Ethylene di-chloride (EDC) and ethylene unloading arms of the
open sea cryopgenic jetty with unloading of three chemical tankers
carrying EDC and ethylene were commissioned.

- During September/October, the Company offered 428,59,570 Rights
equity shares of Rs 10 each for cash at a premium of Rs 30 per share in
proportion 1:2. Additional 1,74,701 shares allotted to retain
oversubscription.

- Another 21,46,612 No. of equity shares issued to employees (only
49,400 shares taken up). Unsubscribed portion of 20,97,212 shares
allotted to UTI (10,00,000 shares) and ICICI (10,97,212 shares).

- Also 5,72,670 shares issued to ICICI, IDBI and IFCI. Of these
1,90,000 shares each were taken up by ICICI and IFCI.

- 109,46,662 Equity Shares of Rs. 10/- each existing at the beginning
of the year, and pro-rata on 40,25,000 No. of Equity Shares of Rs. 10/-
each allotted pursuant to the second compulsory conversion, which took
place on 10th July, 1991, of 14% Secured Redeemable Convertible
Debentures issued by the Company to public in May 1989.

- Non-Convertible Debentures (1990 Issue) for making the respective
Debentures fully paid-up. Secured Fully Convertible Debentures (1989
Issue) and Secured Redeemable Convertible Debentures (1990 series) have
been converted into Equity Shares of the Company on 1st April, 1992 and
30th May, 1992 respectively in terms of the concerned consent orders
received from the Controller of Capital Issues (CCI).

- The Company signed during the year under review an agreement with the
Industrial Credit and Investment Corporation of India Limited and
Industrial Finance Corporation of India for term loan of Rs. 500 lakh
for the Project.

- The Company proposes to issue 450,78,852 No. of Equity Shares of Rs.
10 each at a premium of Rs. 30 per Equity Share to its shareholders on
rights basis, to its employees and to financial institutions

- The Company has received technical know-how from the collaborators
namely UHDE GmbH, Germany for the manfacture of PVC resin which project
is under implementation.

1993

- Sales of pipes and fittings were affected due to prolonged
transporter's strike in two consecutive months during the first half of
the year and lower utilisations of production capacity.

- The Company has successfully commissioned the ethylene di-chloride
(EDC) and ethylene unloading arms of the open sea cryogenic jetty with
unloading of three chemical tankers carrying EDC and ethylene.

- During the year under review, the Company made an issue of equity
shares in terms of the letter of offer dated 25th August, 1992. The
issue of equity shares received an overwhelming response from the
members of the Company and was oversubscribed. The allotment of equity
shares was made on 1st December, 1992.

- The Company has signed during the year under review a foreign
currency loan agreement with The Industrial Credit and Investment
Corporation of India Limited for term loan of Rs. 75 million under
IBRD Pollution Control Project Line already sanctioned for the PVC
resin project.

- During the current year, a loan agreement has been also signed with
Bank of Baroda, for a rupee term loan of Rs. 142.3 million for the PVC
resin project in accordance with the means of finance approved by The
Industrial Credit and Investment Corporation of India Limited.

- The Company set up during the current year its own R&T centre at its
registered office at Pune.

- The Company has received technical know-how from the collaborators
namely UHDE GmbH, Germany for the manufacture of PVC resin.

1994

- The entire PVC plant was commissioned. The Company undertook
debottlenecking and balancing equipment programme to enhance the
existing production capacity.

- During September, the Company issued 40,000,000 warrants to the
promoter group on preferential basis. The warrants were to be
converted into equal number of shares of Rs 10 each at a premium of Rs
34.44 per share. Accordingly 178,07,850 warrants were converted into
equity shares.

- Finolex Polymers Ltd. is a subsidiary of the company.

- The sales of pipes and fittings were affected principally due to
prolonged transporters' strike in two consecutive months during first
half of the year under review and lower utilisation of productive
capacity as compared to the previous year.

- The company has successfully launched its PVC resin on all India
basis and the product has been well accepted by the market.

- The company will be introducing the emulsion/paste grade PVC into the
market.

- The company will be launching during the year its new product
developed inhouse, namely SWR pipes and fittings.

- The company has been granted the highest category credit rating,
namely P1+ credit rating, by CRISIL for issue of commercial paper. The
rating of P1 indicates that the degree of safety regarding timely
payment on the instrument is very strong. '+' (plus) sign for rating
reflects a comparatively higher standing within the category.

- The company has tied up with banks for working capital requirements
of PVC resin division.

1995

- The entire PVC plant has got commissioned during the year under
review.

- The Company has undertaken debottlenecking and balancing equipment
programme to enhance the existing production capacity.

- The Company signed loan agreement with The Industrial Credit and
Investment Corporation of India Limited to meet a part of the cost of
constructing additional storage facility for feed stock on site,
forming part of the expenditure to be incurred on debottlenecking and
balancing equipment programme.

- The Company signed an amicable agreement with the workers' union on
6th October, 1994 which is valid for a period of three and half years
ending 31st March, 1998.

- The non-convertible part of Rs. 150/- each of 14% Secured Redeemable
Convertible Debentures (1989 Series) will be redeemed in full at par on
the expiry of nine years from the date of allotment of the Debentures
i.e. on 10th July, 1998.

- The non-convertible part of Rs. 90/- each of 12,161,917-14% Secured
Redeemable Convertible Debentures (1990 Series) will be redeemed in
full at par on the expiry of nine years from the date of allotment of
the Debentures i.e. on 30th November, 1999.

- The non-convertible part of Rs. 90/- each of 95,757-14% Secured
Redeemable Convertible Debentures (1990 Series) will be redeemed in
full at par at the expiry of nine years from the date of allotment of
the Debentures i.e. on 3rd September, 2001.

- 14% Secured Redeemable Non-Convertible Debentures of Rs. 100/- each
will be redeemed together with a redemption premium of Rs. 5/- per
Debenture in three equal instalments at the expiry of 6th, 7th and 8th
year from the date of allotment i.e., 30th November, 1996, 30th
November, 1997 and 30th November, 1998 respectively.

1996

- The Company has introduced in the market five grades of suspension
PVC and four grades of emulsion/paste PVC.

- The Pipes Division of the Company has been granted Quality Systems
Certification Licence as per IS/ISO 9002 by Bureau of Indian Standards,
accredited by Raad Voor de Certificates, Netherlands.

- R.D. Aga, Director of the Company then, passed away on 16th February.

- In June, the Company allotted 1,145,340 equity shares to financial
institutions, namely The Industrial Credit and Investment Corporation
of India Limited, Industrial Development Bank of India and Industrial
Finance Corporation of India Limited at a premium of Rs.5 per share,
pursuant to the Conversion option exercised by them in respect of their
rupee term loan.

- In November, the Company redeemed (with proportionate premium) 1/3rd
of the aggregate face value of 7,885,756 Non-Convertible Debentures of
Rs. 100 each In accordance with the terms of their issue and allotment.

1997

- The Company has installed jumbo bags unloading and raw material
transportation system.

- In April, the Company signed loan agreement with Kredietbank N.V. for
foreign currency loan of USD 9.6 million, with Ministry of Finance's
approval under the External Commercial Borrowings ('ECB') guidelines.

- The ECB facility has been set up in co-operation between Indusind
Bank Limited and Kuedietbank N.V., Brussels - Belgium.

- The Company has given donations, bought benches and done
electrification of classrooms and flooring for schools in Ranpar and
Ratnagiri. The Company has also given donation to the remand home and
to Aawishkar, the spastic institution in Ratnagiri attending to
children.

- 367,650 No. of Equity Shares have been allotted for consideration
other than in cash to the shareholders of the erstwhile Finolex
Plastics Pvt. Ltd. pursuant to the scheme of amalgamation.

- 5,511,093 Equity Shares have been issued as fully paid up Bonus
Shares by capitalisation of General Reserve.

- 2,012,500 No. of Equity Shares have been issued at par on 1st
conversion of 14% Secured Redeemable Convertible Debentures (1989
Series) on 10th January, 1990.

1998

- LPG import and storage facilities set up by the Company have been
successfully commissioned.

- The Company has developed specialty fittings for large diameter pipes
with elastomeric sealing ring joints.

- During the period under review, the Company redeemed 1989 Series
Debentures fully and paid the second instalment of Nonconvertible
Debentures.

- On 13th February, the Company signed the Agreement with National
Securities Depository Limited dematerialising its equity shares for the
benefit of its members.

- During the period under review, Mr. M.P. Modi was nominated as a
Director on the Board of Directors of the Company by Life Insurance
Corporation of India.

- The Company has planted more than 30,000 trees near PVC plant to
maintain ecological balance. These trees are being grown on water
treated in the effluent treatment plant of the Company.

1999

- The Company was honoured with the Mahratta Chamber of Commerce,
Industries and Agriculture's prestigious Dr. R.J.Rathi 'Environmental
Pollution Control' award for outstanding efforts in controlling
pollution and protecting the environment at the plant.

- The Company is setting up a PVC pipes plant of about 10,000 metric
tons per annum capacity adjacent to its PVC plant.

- The Company signed during the year under review Tripartite Agreement
with Central Depository Services (India) Limited and MCS Limited for
dematerialisation of equity shares.

2000

- Crisil has assigned an 'AA-' rating to the proposed Rs 50-crore NCD
issue and 'P1+' rating to the Rs 60 crore commercial paper programme of
the company.

- The Company's PVC plant at Ratnagiri has received a 'Safety Award'
from the National Safety Council, Maharashtra Chapter, for achieving
the lowest accident frequency rate under the Chemicals and Fertilizers
Industry Group, during 1999.

- The Board of the company proposed to buyback 10 per cent of its
shares at a price not exceeding Rs 40 per share.

2001

- The Company is introducing a stock option scheme for its employees.

2002

-Finolex Industries has acquired 13.39% of the company's paid up capital
from the open market under the buyback scheme.

-Finolex Industries has witnessed 56.69% increase in the net profit at
Rs.59crs as against Rs.37crs.

-Mr.K.N.Atmaramani has been co-opted as the Additional Director of the company.

-The Board of Finolex Industries have approved for the expansion of installed
capacity oc company's PVC plant at Ratnagiri by additional 130,000MT per annum.

2003

-Finolex Industries Ltd have informed BSE that the company is buying back
its ordinary shares of Rs.10 each.

-Finolex Industries is increasing its capacity to produce Polyvinyl Chloride Pipes (PVC)
to 52000 tonne a year during the current fiscal.

-Finolex Industries is investing Rs.500cr with a view of expanding its Ratnagiri facility.

-Finolex infused Rs 23 cr to increase output and has added a new extrusion line at its Ratnagiri facility


2007

-Finolex Industries Ltd (FIL) is close to signing a agreement with Tishman Speyer India Ventures, a company engaged in real estate development, for the sale of its land in Chinchwad, near Pune, which currently houses one of its PVC pipe manufacturing facility.
 
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