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Oil Country Tubular Ltd. Company History and Annual Growth Details

1985 - The Company was incorporated on 22nd February. The Company
obtained Certificate of commencement of business on 30th March.
The Company has been promoted by United Steel Allied Industries
(USAI), its managing partner K. Suryanarayana and their

- The main objective of the company manufacture of complete range
of drill pipes, production tubing, casing pipes and for providing
inspection services.

- The Company undertook to set up a project for the manufacture of
10,000 tpa of drill pipes, 15,000 tpa of production tubing and
25,000 tpa of casing pipes, collectively referred to as oil
country tubular goods (OCTG) required for oil exploration and

- Major portion of plant and machinery comprising heat treatment
line, tool joint manufacturing line, coating line, threading
line, etc., were imported from Japan and U.S.A.

- The Company has entered into a technical collaboration with Baker
Huges Tubular Services Inc. USA., for Oil exploration equipment,
comprehensive technololgy for manufacture of tubulars in one
integrated plant, and a wellhead scanalog - computerised system
for automatic and elaborate inspection of tubing on well site.

1989 - 81 shares subscribed for by signatories to the Memorandum of
Association. 228,49,919 shares then issued at par out of which
the following shares were reserved and allotted on a firm basis:

- (i) 27,79,919 shares to promoters and their associates;

- (ii) 10,00,000 shares to Canbank Mutual Fund;

- (iii) 15,00,000 shares to SBI Capital Markets,

- (iv) 10,00,000 shares to APIDC;

- (v) 34,00,000 shares to NRIs on repatriation basis;

- (vi) 7,20,000 shares to Baker Hughes Tubular Services Inc., USA

- (vii) 13,00,000 shares to Tubos De Acero De Mexico, S.A., Mexico.

- Out of the remaining 111,50,000 shares, the following shares were
reserved for preference allotment:

- (i) 11,42,500 shares to employees (only 20,200 shares taken up);

- (ii) 35,23,000 shares to NRIs on repatriation basis (only
20,72,300 shares taken up);

- (iii) 5,00,000 shares to SBI Capital Markets (all were taken up)

- (iv) 5,00,000 shares to Canbank Mutual Fund (all were taken
up). The balance 54,84,500 shares, along with the unsubscribed
portion of 25,73,000 shares out of preferential quota were
offered to the public in Feb.

- Additional 16,72,500 shares allotted to public to retain

1991 - The overall production and sales were affected due to restriction
on imports.

- The company proposed to expand its capacity from 50,000 MT to
75,000 MT with additional investment in equipment and other

1992 - During May, the Company offered 1,02,99,500 No. of equity shares
of Rs 10 each at par of which 4,90,500 No. of equity shares of
Rs 10 each at par of which 4,90,500 shares were reserved for
preferential allotment to the employees of the Company (only
2,38,600 shares taken up).

- The remaining 98,09,000 shares were offered to the shareholders
on rights basis in the proportion 2:5. All were taken up.
Additional 14,71,350 shares were allotted to the shareholders to
retain oversubscription. The unsubscribed portion of the
employees quota was allowed to lapse.

- 19,000 shares forfeited. 32,48,000 shares allotted at par to
financial institutions. Forfeiture on 4,000 shares annualled on

1994 - As at 31st March, the Company revalued its assets and the net
surplus of Rs 174.21 crores arising out of it was credited to
revaluation reserves.

- During May 1992, 98,09,000 No. of equity shares issued on Rights
basis in prop. 2:5. Additional 14,71,350 shares allotted to
retain oversubscription. Forfeiture on 2,180 shares annulled.
Another 4,90,500 shares offered to employees. (only 2,38,600
shares taken up).

1995 - The Company entered into a long term arrangement with M/s. Grant
Prideco SA Switzerland, a subsidiary of EVI, USA for services and
purchase of tubular goods manufactured by the Company. This
arrangement would ensure optimum utilisation of the capacity and
would substantially add to the income of the company.

1996 - As at 31st March, the Company again revalued its assets and the
net surplus of Rs 159.14 crores arising out of it was credited to
revaluation reserves.

- Subject to necessary approvals of the company proposed to issue
392,89,500 bonus equity shares in prop. 1:1.

1997 - Presently Oil Country Tubular has only a marketing joint
venture with EVI - 100 per cent sales agreement.

- EVI has entered into an exclusive manufacturing agreement with
OCT for five years by which 75 per cent of the OCT's
manufacturing facility would be exclusive to EVI.

- The company manufactures drill pipes, production tubings and
casing pipes for the oil exploration industry in technical
collaboration with Baker Huges Tubular Services of the US.

1998 - Oil Country Tubular (OCTL) is yet another company that
currently enjoys the benefits of catering to the oil industry.
OCTL supplies the oil industry (mainly ONGC) with tubes and
pipes that are used in drilling operations.

- The company had managed to improve the debt equity ratio by
repaying a substantial quantum of debt amounting to Rs.33 crore.

1999 - The company has floated a new arm - United Seamless Tubular Ltd,
to manufacture seamless pipes ranging from 5 inches to 14 inches
with a capacity of 140 thousand tonnes per annum.


-Shri Sunil Kapoor ceases to be Director with effect from December 5, 2003 as IFCI has withdrawn the nomination vide letter dated December 5, 2003.