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Indo Rama Synthetics (India) Ltd. Company History and Annual Growth Details

1986 - The Company was incorporated on 28th April, and obtained
Certificate of Commencement of Business on 24th November.
It was promoted by Shri M. L. Lohia & Shri. A. P. Lohia. The
Company manufacture synthetic yarn.

- The Company undertook to set up a spinning mill with a complement
of 21,120 spindles to manufacture synthetic yarn. Latest
technology and machineries such as autoconers 238 fitted with
electronic computer centres were imported from M/s. W.
Schlafhorst & Co., West Germany. Other plant and machineries
were procured indigenously from Lakshmi Machine Works Ltd., and
Trumac Engg. Co. Ltd.

1989 - Necessary approvals were received for enhancing the existing
capacity to 41,184 spindles for synthetic blended yarn and 120
looms for making synthetic fabrics in the existing unit.
Necessary steps were taken for procuring machines and other
equipments for the said expansion programme which was implemented
during 1991.

- The Company proposed to further expand its capacity by 25,000
spindles to manufacture cotton and synthetic blended yarn.

- The Company proposed to set up a 100% Export Oriented Unit (EOU)
with a capacity of 24,960 spindles at Pithampur Industrial Area,

- The Company proposed to set up an industrial undertaking in M.P.,
for manufacture of 2.5 million number of automobile tyres and 2.5
million numbers of automobile tubes.

- 7 No. of equity shares subscribed for by the signatories to the
Memorandum of Association. 89,39,993 No. of equity shares then
issued at par of which the following shares were reserved and
allotted: (i) 49,19,993 shares to promoters/directors (including
NRIs on repatriation basis) and (ii) 4,20,000 shares to MPAVN.
Of the balance 36,00,000 shares, the following were reserved for
allotment: (i) 3,00,000 shares to UTI (Firm), (ii) 3,00,000
shares to SBI Capital Markets Ltd. (Firm) and (iii) 4,47,000
shares to the employees (including Indian working directors) of
the Company (only 1,42,300 shares taken up). The remaining
25,53,000 shares, along with 3,04,700 shares not taken up by
employees were offered to the public during June 1989 (all were
taken up). Additional 10,16,250 shares were allotted to retain
oversubscription (5,40,000 to public and 4,76,250 to directors,
their friends, etc.)

1991 - The Company commissioned 17,280 spindles.

- The Company embarked on a backward integration project at Nagpur
to manufacture 63,000 tpa of Polyester Oriented Yarn (POY -
38,000 tpa, Polyester Staple Fibre and Polyester Chips (PSF & PC
- 25,000 tpa). Also a spinning unit with 59,184 spindles was
being set up alongside the plant.

- The state-of-the-art plant will use technology from the world
leaders Chemtex International Inc./Du Pont of USA for
polymerisation and POY and Toyobo of Japan for PSF.

- During April, the Company offered 10,45,410-14% secured
redeemable partly convertible debentures of Rs 200 each for cash
at par as follows: (i) 9,95,630 debentures were offered on rights
basis in the proportion 10:100 No. of equity shares held (all
were taken up). Additional, 1,49,345 debentures were allotted
to retain oversubscription. (ii) 49,780 debentures were offered
to employees (including Indian working directors)/workers of the
Company on an equitable basis (all were taken up). Additional
7,467 debentures were allotted to retain over-subscription.

- Part A of Rs 50 of each debenture would be automatically
converted into 5 No. of equity shares of Rs 10 each at par at
the end of six months from the date of allotment of debentures.
Accordingly 60,11,105 No. of equity shares were allotted.

- The company had converted 11,87,340 debentures (Part-B) of Rs 50
each into 23,74,680 No. of equity shares of Rs 10 each at a
premium of Rs 15 per share after received positive consent. The
remaining 14,881 debentures were redeemed in the absence of
receipt of positive consent.

- The non-convertible portion - Part C - of Rs 100 of each
debenture would be redeemed at par in three annual instalments at
the end of 7th, 8th and 9th year from the date of allotment of
the debentures.

1992 - The company commissioned 8,160 spindles in Unit II at Pithampur.
The Company proposed to further add 21,984 spindles at Pithampur
unit of which 4,704 spindles were expected to be commissioned by
September 1993 and balance 17,280 spindles by December 1995.

1993 - During September/October, the Company offered 1,11,36,000 Zero
Interest Fully Convertible Debentures of Rs 240 each on right
basis to the existing shareholders in the ratio of one FCD: 2
equity shares held. Out of which 1,14,982 FCDs were offered to
the employees. Only 2,775 debentures were taken up.

- Part 'A' of Rs 60 of debenture was converted into one equity
share at a premium of Rs 50 per share after 6 months from the
date of allotment. Accordingly 11023,793 shares allotted. Part
'B' of Rs 180 was converted into 2.2 equity share of each FCD.
Accordingly 242,52,344 No. of equity shares were allotted on 31st
January 1995.

1994 - The Company commissioned 44,208 spindles and the balance 14,976
spindles were expected to be installed shortly.

- In Draw Texturising Yarn plant 14 machines were commissioned and
the balance two machines were to be installed by end of July

- The Company successfully implemented backward integration plant
of 67,000 MTPA at Nagpur. Also undertook further expansion of
capacity from 67,000 MTPA to 2,35,000 MTPA which was being
implemented as per schedule.

1995 - In view of captive consumption of PTA of 2,00,000 tonnes per
annum the company proposed to put up a PTA plant with an
installed capacity of 3,50,000 tonnes per annum.

- The Company issued 43,975,380 Global Depositary Receipts at a
price of US $ 11.37 per GDR underlying same number of equity
shares of Rs 10 each.

1996 - The Company raised its polymer capacity from 69,300 tonnes to
238000 tonnes per annum, to become the second largest producer of
polyester products in the country.

- The Company finalised a technology tie-up with MFTSUI
Petrochemical Industries Ltd. of Japan for the PTA project.

- The Company proposed to integrate forward with the setting up of
a weaving and processing unit at an estimated investment of Rs
200 crores.

- 28,659,086 bonus shares allotted in the ratio 1:2, 43,975,380
shares allotted against equal number of GDRs.

1997 - The Company undertook to set up a PTA plant as a backward
integration with a capacity of 3,50,000 tonnes per annum at an
estimated cost of US $ 340 million.

- The Company entered into a joint venture with Mitsui Chemicals
Inc., Japan for technology transfer of PTA. The company promoted
a joint venture Co. in the name of Indo Rama Petrochemicals Ltd.

- The company is the second largest producer of polyester in India
and holds a marketshare of 20 per cent.

- Indo Rama Synthetics has shut down one of its three poly
condensation units at Butibori. The unit had been shut for
maintenance and operational purposes. The company had adequate
stocks and supplies were not affected. Indo Rama had shut the
line because of a stock pile up.

- Indo-Rama Synthetics has signed a $ 175 million syndicate loan
facility in Singapore, which will be used for refinancing
existing loans as well as general corporate purposes.

- Indo Rama Synthetics (I) Ltd (IRSIL) has won the Federation of
Indian Export Organisation's 'Niryat Shree' award for excellence
in export performance.

- Indo Rama Synthetics, the country's largest polyester producer,
has won the Commerce Ministry's coveted National Export Award for
its improved export performance for 1995-96.

- The 3,50,000 tpa PTA plant will be a joint venture between Indo
Rama and the Japanese companies Itochu Corporation and Mitsui
Petrochemicals Corporation.

- Indo Rama Synthetics, a key producer of polyester, has announced
a tie up with global trading technology giants, Itochu
Corporation and Mitsui Petrochemicals Corporation, both of Japan
for setting up a Rs 1,200 crore PTA plant with a licensed
capacity of 3.50 lakh tonnes annually.

- Indo Rama Synthetics India Ltd (IRSIL) is tying up with Shikibo
of Japan to set up a Rs.550 crore textile manufacturing unit in
Dharwad, Rajasthan.

- Labour problems have forced Indo Rama Synthetics to close its
spun-yarn division at Butibori in Nagpur.

- It has set up a Rs 555 crore plant at Butliboi near Nagpur for
production of synthetics yarn, polyester staple fibre and
partially oriented yarn.

- The Union Commerce Minister, presented the Synthetic & Rayon
Textiles Export Promotion Council award for the best overall
export performance during 1996-97 to Indo Rama Synthetics Ltd

- The company has proposed to open more marketing
outlets/representative offices in interior Tamil Nadu,
particularly in areas where clusters of textile spinning units
are operating.

- A memorandum of understanding (MoU) for a joint venture agreement
was signed between Indo Rama and Itochu Corporation and Mitsui
Petrochemicals for the first phase with a 3.5 lakh tonne per
annum capacity.

- 25,793,177 rights shares of Rs.10 each (prem. Rs. 30 per share)
issued in prop. 3:10.

1998 - Indo Rama will sign a shareholders agreement for its PTA project
which will be financed by equity worth Rs.420 crore, while the
balance Rs.940 crore would be tied up by debt.

- Indo Rama Synthetics, the second largest polyester producer, has
announced plans to increase capacity of its Butibori plant
through de-bottlenecking of the existing lines.

- INDO RAMA Synthetics (India) Ltd is to set up a PTA and polyester
unit near Mangalore.

- Indo Rama Synthetics the O P Lohia controlled petrochemicals
company-has proposed a restructuring plan, to implemented from
January 1.

- Indo Rama has also changed the method of accounting interest on
delayed payments/amount due from customers for the current year
from cash basis to accrual basis.

- Indo Rama has entered into a long term agreement for supply of
raw materials - PTA and MEG - anticipating a rise in their

1999 - INDO Rama Synthetics (I) Ltd has shut down two of its three
polyester lines at its plant in Maharashtra, following violence
among the workforce.

- The company is one of the leading players with a 16 per cent
market share in the polyester industry. The plant in Maharashtra
has a total capacity of around 2.50 lakh tonnes of polyester,
including staple fibre and partially-oriented yarn.

- The company has shut down its third polycondensation line as well
over the past few days, thus rendering the entire plant closed.

- The two lines of polyester were shut on July 30, following
violence between two rival factions at the plant, company
officials said. Indo Rama has a 2,000-strong workforce.

- The company is one of the leading players with a 16 per cent
market share in the polyester industry. The plant in
Maharashtra has a total capacity of around 2.50 lakh tonnes of
polyester, including staple fibre and partially-oriented yarn.

2000 - The Company has allotted to IFCI 2.5 lacs equity shares of Rs.
10/- each by way of conversion of Loan into equity pursuant to
IFCI exercising its option for such conversion.

- Indo Rama has appointed Mr B Anantharaman as President and Chief Financial
Officer of the company.

2001 - Indo Rama Synthetics (I) Ltd. has bagged the 'Best Overall Export Performance' award
of the Synthetic & Rayon Textiles Export Promotion Council for the year 1999-2000.

- The Board of Indo Rama Synthetic Ltd. has allotted 1.027 crore equity shares of Rs 10
each at par, aggregating Rs 10.27 crore, to IFCI by way of conversion of loan into equity.

- Indo Rama Synthetics has appointed Accenture, a leading management and consultancy firm for implementation of customer relationship management (CRM) and information technology (IT).


-Indo Rama Synthetics signs a contract with Zimmer AG of Germany for the installation of polyester staple fibre (PSF) and textile grade chips production unit with a 500 tonne per day continuous polycondensation facility with an estimated cost of the project around 490 crore.

-Mr Shailendar Tandon is appointed as the Chief Financial Officer of Indo Rama Synthetic.

-Indo Rama Synthetic signs a contract with Zimmer AG of Germany for the installation of
Polyester staple fibre and textile grade chip production unit.

-Indo Rama appoints Mr.Rajiv Agarwal as the President and Chief Executive Officer of
the Spinning Business.

-Indo Rama increases its production capacity in several product categories.

-Indo Rama gets SRTECP Special Award for Exemplary Export Performance for the
second highest overall export performance in India.


-Indo Rama enters into an agreement with Pegasus Global Limited of Thailand to set up
StartPet Inc.

-Indo Rama appoints Mr.Udayan G Dravid as the senior Vice-president of the Marketing Segment.

-IRSL gets Mr. Shantanu Banerjee as the new Vice-President, Corporate Human Resource
of Indo Rama Synthetics.

-Indo Rama Synthetics Ltd secures the National Safety Award for 2002-2003.

-Indo Rama signs tech pact with Zimmer AG for expansion


-Indo Rama Synthetics signs Share Purchase Agreement with Indo Pet Thailand

-Delist from Ahmedabad Stock Exchange with effect from October 15, 2004.


-Delist equity shares from Madhya Pradesh Stock Exchange (MPSE) w.e.f. February 15, 2005.

- Delist equity shares from the Calcutta Stock Exchange Association Ltd (CSE) w.e.f. April 25, 2005.


- Indo Rama Synthetics India Ltd has appointed Dr. Arvind Pandalal as an Additional Director on the Board of Directors of the Company with effect from July 20, 2009.
Oct 21, 12:00 am
Oct 21, 4:14 pm
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