|NAGPUR ENGINEERING COMPANY LTD., (NECO), the flagship Company of the Neco Group, was originally incorporated as a Private Limited Company and obtained the Certificate of Incorporation on November 28, 1972. It commenced commercial operations in 1976 for the manufacture of cast iron pipes and fittings by setting up their first foundry at Nagpur, Maharashtra. Subsequently the company was converted into a Public Limited Company on November 21, 1985.
In 1987, the Company's second foundry unit for manufacture of the same product range was established at Bhilai in Madhya Pradesh and with further increase in product demand, the third unit was established at Anjora, Rajandgaon in Madhya Pradesh in October, 1991.
The company's principal customers are the construction industry and the Indian Railways. It also exports Cast Iron Castings for construction and Municipal requirements to Middle East and Japan averaging about 2000 MT per annum.
The Company is the recipient of the Export Excellence Award from the Engineering Export Promotion Council in recognition of achieving highest export performance amongst the SSI exporters in the panel Cast Iron Pipes, Fittings and other Sanitary Castings for the year 1992-93.
With a view to diversify its activity the company decided to set up a Solvent Extraction Plant with a crushing capacity of 500 TPD and refining capacity of 100 TPD. The company was offered a newly erected Solvent Extraction Plant having a crushing capacity of 200 TPD and refining capacity of 25 TPD which had begun its trial runs. This
plant was erected by NAFPL, promoted by Mr. S H Agarwal & others, who were already in the business of trading in soyabean oilseeds & food grains. The Company then decided to take up the Plant and enhance its crushing capacity from 200 TPD to 500 TPD and refining capacity from 25 TPD to 100 TPD.
In the process of acquisition, the entire shares of NAFPL were first acquired by the Promoters & Associates of NECO whereby it became a group Company; and further the entire Assets and Liabilities were purchased by NECO out of the Internal Accruals at book value. To effect the transfer of the Immovable Property i.e. Land, Building, Plant and Machinery etc., a Sale Deed dated March 27, 1993, was executed by NAFPL in favour of NECO. The details of the Assets and Liabilities taken over are as follows:
Land and site development 2.87
Factory shed & buildings 117.51
Plant & Machinery, Misc. Fixed
Assets and other deposits 295.35
From SICOM 145.00
From MSFC 75.85
Net Consideration paid 194.88
The necessary registration/licences are also obtained by the Company from the concerned authorities.
After the acquisition, the Company commenced commercial production immediately and simultaneously started the expansion programme. During 1993-94, the crushing capacity was increased to 300 TPD which is being further increased to 500 TPD and refining capacity is being increased to 100 TPD.
The Shareholders of the Company at their Meeting held on 28th February, 1997, approved the Scheme of Amalgamation of Nagpur Alloy Castings Limited along with Jayaswals Neco Limited into the Company w.e.f. appointed date i.e. 1st April, 1996.
-Board and financial lenders approved to Sell immovable properties of the Food Products Division which has been determined at Rs 68 million
-Company name has been changed from Jayaswals Neco Ltd to Jayaswal Neco Industries Ltd.