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Modi Rubber Ltd. Company History and Annual Growth Details

YEAR EVENT
1971 - The Company was incorporated on 27th February at U.P., Modinagar.
The main objects of the company is manufacture of automobile
tyres and tubes.

- Issued 4,49,923 shares to directors, business associates and
employees of the Modi Group, 8,00,000 shares to Modi Industrial
Ltd., 7,50,000 shares to Modipon Ltd., and 4,00,000 shares to
Modi Spg. & Wvg. In June 1972 36,00,000 shares issued at par.
1,30,000 shares to ICICI, 1,70,000 shares to IFCI, 1,30,000
shares to UTI, 2,20,000 shares to LIC and 29,50,000 shares to the
public.

1975 - 20,00,000 Right equity shares issued at par in prop. 1:3 during
February 1975.

1978 - 3,00,000 shares allotted at par to ICICI in part conversion of
loan.

1980 - 15,75,000 No. of equity shares of Rs.10 each of Mumbai Tyres
International Ltd., held by Firestone Tire & Rubber Co., U.S.A.,
were transferred in the name of the Company.'

- 20,80,000 No. of equity shares issued at par to financial
institutions on conversion of loans during the year.

1981 - Superior Investment (India) Ltd., and Spin Investment (India)
Ltd., became subsidiaries of the Company.

- Formal transfer of the management of Mumbai Tyres International
Ltd., to the Company was effected on 21st December.

1983 - The company was granted permission to manufacture upto 4,00,000
radial tyres per annum within the existing licensed capacity for
the entire range of radial truck, passenger car and light truck
tyres both for the domestic and export markets.

- The financial institutions and banks sanctioned term loans of
Rs.27.5 crores towards part of the cost of modernisation cum
expansion scheme of the Company.

1984 - The Company entered into a technical collaboration agreement with
Continental Gumme-Werke Aktiengesellschaft, Hanover, West Germany
The collaborators gave the right to the Company to use their
trade mark 'RAMPATHOUSE' on its products. The company extended
this agreement for a further period of 5 years commencing from
1st November.

1986 - The Company launched 'Platinum Tyre' a truck tyre and 'R-90
Executive' a premium car tyre.

1987 - The Company received requisite permission for setting up
additional facilities for the manufacture of radial tyres. It
entered into a collaboration with M/s. Continental
Aktiengesellschaft, West Germany for the same. The company
applied to Government for inclusion of passenger and light
commercial vehicle radial tyres in the existing letter of intent
for truck tyres.

1988 - With a view to improve productivity, a fuel efficient big tyre
for the newer generation vehicles in LCV category was introduced
by the company.

1989 - The Company successfully developed and launched, a new truck tyre
'MARATHON'. New sizes and pattern were also added to light
truck/passenger and scooter/motorcycle range of tyres to meet the
changing market trends.

- The Company finalised the first phase of the modernisation
programme involving rationalisation of production of the smaller
tyres of the Modinagar plant and of the bigger tyres including
the radial tyres at the Modipuram plant.

- The Company in collaboration with ING.C. Spa., and Olivetti Ltd.,
promoted 'Modi Olivetti Ltd' for manufacture of mini-computers
and micro-processor based systems. Also in technical and
financial collaboration with Lurgi GmbH and MEG, West Germany,
and with Bihar State Industrial Development Corporation Ltd,
'Bihar Sponge Iron Ltd' was promoted for manufacture of sponge
iron.

- In addition, in collaboration with Spark Plug Co. of U.S.A.,
Modi Champion Ltd., was promoted for manufacture of spark plugs.

- The technical collaboration agreement with Continental AG, West
Germany was extended for a further period of five years with
effect from 1st November. A fresh technical collaboration
agreement was entered into with Continental AG, West Germany for
acquisition of the radial tyre technology.

- The Company was incorporated on 1st May, for the manufacture of
30,000 tonnes per annum of solvent spun highwet modules
cellulosic fibres in technical and financial collaboration with
Courtaulds Fibres Ltd., U.K., in the district of Raigad,
Maharashtra State.

- The Company was incorporated on 11th January, for the manufacture
of large capacity diesel generating sets based on heavy fuel in
technical collaboration with Mirrles Blackstone Ltd., U.K., in
the district of Aurangabad, Maharashtra State.

1990 - The company was incorporated with Gujarat Alkalies & Chemicals
Ltd., on 21st February, for the manufacture of float glass in
technical and financial collaboration with Guardian Industries
Corporation, U.S.A. in the district of Bharuch, Gujarat State.

1991 - The Company allotted 10,00,000 - 17.5% non-convertible debentures
of Rs.100 each on private placement basis with UTI, LIC, GIC and
its subsidiaries. These are redeemable in three equal annual
instalments commencing from 31st December, 1997 at a premium of
5% of the face value of debentures (payable along with the second
annual instalment of redemption).

It was also proposed to issue further non-convertible debentures
aggregating Rs.2,000 lakhs on private placement basis to
financial institutions, Mutual Funds, banks etc.

1992 - Steps were taken to embark upon the second stage of modernisation
of its plants for production of radial tyres in collaboration
with Continental AG, Germany.

- During February-March, the company offered 31,14,000 - 14% fully
convertible debentures of Rs.200 each on Rights basis in the
proportion 3 debs. : 10 equity shares held (all were taken up).
Additional 4,03,350 debentures were allotted to retain
oversubscription.

- Another 1,55,700 - 14% fully convertible debentures were issued
to the employees' on an equitable basis.

- Part A of Rs.100 of the face value of each debenture was to be
converted into 2 equity shares of Rs.10 each at a premium of
Rs.40 per share on the expiry of 6 months from the date of
allotment of debentures. Accordingly 73,46,100 equity shares
were allotted on 16th December, 1972.

- Part B of Rs.100 of the face value of each debenture was to be
converted into two equity shares of Rs.10 each at a premium of
Rs.40 per share at the expiry of 18 months from the date of
allotment of debentures.

- Subject to necessary approvals, it was proposed to amalgamate
Modi Stone Ltd., with the Company.

- 73,46,100 No. of equity shares issued on conversion of part 'A'
of debentures.

1993 - The Company proposed to invest Rs.600 lakhs in the equity capital
of a project being implemented by AMNSL in foreign technical
collaboration with Alcatel CIT, France at a cost of Rs.3,500 lakh
for manufacture of digital switching system.

- Subject to necessary approvals being received, the company
proposed to issue non-convertible debentures of an aggregate
value of Rs.2,000 lakhs on private placement with Mutual Funds,
banks and Financial Institutions.

- 73,14,432 No. of equity shares issued on conversion of part 'B'
of debentures. 31,668 shares kept in abeyance due to non-payment
of call money.

1994 - The Company issued non-convertible debentures to the extent of
Rs.4500 lakhs on private placement basis to IFCI, IDBI, UTI, LIC
GIC and its subsidiaries.

1995 - The company had set up the facilities for manufacture of
automobile tubes at Partapur, Meerut.

1996 - The project for manufacture of radial tyres for passenger cars
and light commercial vehicles was held in abeyance on account of
various constraints.

2001 - The Modi Rubber board meeting, scheduled to be held here on August 31,
is expected to be a stormy one.

- The workers' union of tyremaker Modi Rubber on June 30 came out in support of its managing director B K Modi, saying he would continue to provide leadership and direction to the company.

- Modi Rubber said on July 1st it would hive off its tyre business into a 100 per cent subsidiary before offloading equity to German tyre major Continental.

- Mr BK Modi, one of the managing directors of Modi Rubber (MRL), on July 14 met the chiefs of financial institutions to sort out the stake sale row in MRL.

- The board of Modi Rubber Ltd (MRL) on July 31, restored to Dr B.K. Modi all the functionary powers vested with him prior to the fateful June 28 board meeting.

- Mr T Panduranga Rao chairman of Modi Rubber has submitted his resignation to Unit trust of India, of which he is the nominee. The approval is yet to come from Modi Rubber board.

2003

- SEBI vendicates HSBC Sec in Modi Rubber issue

- Nearly two-and-a-half years after shutters were downed at Modi Rubber Ltd's (MRL) tyre manufacturing factory at Modipuram, promoter brothers BK and VK Modi have taken the first step forward towards revival of the company by signing a workers' agreement. MRL has been jointly managed by the two Modi brothers for the past many years though other factions of the Modi family also own some shares in the company. The bulk of the 46 per cent Modi family shareholding is controlled by VK and BK Modi.

2006

-Modi Rubber inks agreement with Chinese co
 
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