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JBF Industries Ltd. Company History and Annual Growth Details

Incorporated in the year 1982 as a Private Company under the name JBF
Synthetics, it became a Public Limited Company in the year 1986, and in
the year 1989 the name was changed to JBF Industries Limited.

The Company has shown consistent growth and till 1999 has a record of
uninterrupted divident payment since beginning. The Company is listed
on BSE and other major stock exchanges.

JBF has established itself as an industry leader in the 'Texturising'
business and one of the top 5 players in POY Industry, having a storng
brand and one of the highest operating margins in the industry.
Backward intergration into manufacturing of 'polyester Chips' has
ensured timely availablity of quality raw matggerial and better
profitability compared to the industrial average.

BUSINESS ACTIVITIES:

* YARN DIVISION:
Texturing
POY spinning

* POLYESTER CHIPS:

YARN DIVISION:

Texturising:-

The texturising facilities of the Company are situated at Silvassa,
which is the heart of the texturising business. With the modest
beginning in 1987 with a capacity of 3,000 tpa, the Company has
consistently increased the manufacturing facilities to 4,800 tpa in
1993, 6,000 tpa in 1994, 9,000 tpa in the year 1996, and to 12,000 tpa
in the year 1997. At present the company has texturising capcity of
about 9,000 TPA as some of the old and inefficient machines have been
discarded and sold.

Today, JBF is one of the large texturising unit in India. The
texturised yarn of the Company has its own brand image and is highly
competitive in terms of the quality and price. The customers are small
to medium size weavers situated at Bhiwandi, Surat and Ludhiana. Most
of these customers are with the Company for long time and have been
serviced through about 20 dealers, who are responsible for the timely
collection of funds.

Partially Oriented Yarn(POY):-

The POY Units is also situated at Silvassa and is in the nature of
backward integration for the Company. This plant had capacity of
18,000 tpa, and was constructed in a record time of about 15 months
without any major cost overrun.

The commercial production was started in June, 1996 and there after the
plant is running at an average capacity of 100%. The quality is well
accepted in the market and is considered among top few in the industry.

Encouraged with the performance of the POY Division, the Company had
increased the production capacity of POY from 18,000 TPA to 27,000 TPA
in the month of July, 1998. At this stage, the Company had captive
consumption of about 50% of the production and the balance quantity was
sold in the local market.

By August 1999, the company had added some balancing equipment and with
some changes in the layout of the equipment increased production
capacity to 36,000 tpa with marginal investment. This exercise has
helped the company to reduce the cost of Production of POY. The
Company is continuously trying to increase the productivity and reduce
cost of production with some more technical changes. The company has
now achieved production capacity of 40.000 tpa by adding balancing
equipments. Shortly the company will be in position to achieve
production capacity of 60,000 tons per annum.

Since the company is situated in Silvassa, which is the major
consumption center of POY, it has crucial advantages over the
competitors.


Some of these advantages are:-

1. Location: The users of POY are located in Silvassa and Surat,
resulting in easy access and lower packing and transportation cost.

2. Captive Consumption: The Company has texturizing capacity of 9,000
tpa which ensures higher capacity utilization and better negotiation
capability.

3. Lower Cost of Produciton: The latest technology with 'auto winders'
ann the efficient production ensures one of the lowest power
consumption, lower wastage as compare to industry norms and lower cost
of production as compare to the industry average.

4. Lower Capital Cost: Low capital Cost of about Rs. 8 crores per
1,000 ton for the original project, as compare to average capital cost
of about Rs. 13 crores per 1,000 ton of the Industry results into low
fixed cost of running the plant.

5. Captive Power Generation: The Company has in-house power generation
capacity of 9 MVA and is not dependent on the Government supply of
power for uninterrupted production. The company has recently set up 66
KVA power facility, which will ensure continuous and cheap power to the
company.

6. Flexibility:

The POY Plant has in built facility to produce wide varieties of yarn
at short notice. Thus, it is possible to respond to the change in the
market demand in the shortest possible time.

7. Exports: As the products match international quality, it can cater
to the export market whenever international prices are more attractive.

POLYESTER CHIPS

With an object to become self sufficient for the availability of
'quality and consistent' supply of 'PCT Chips', the Company has set up
production facility with a capcity of 80,000 TPA.

This backward integration has enabled Company to provide 'POY' of some
merge number on consistent basis. It has also resulted in improvement
in the profitability of the Company.

2004

- The preferential allotment of Equity shares of the company would be given to the promoters of the company based on guidelines issued by SEBI in connection with creeping acquisition upto 5% of the share capital of the company, for each financial year

2007

- Jbf Industries Ltd. has appointed Mr.N Balasubramanian, as an Additional Independent Director on the Company's Board .
 
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