|Polycon International Ltd. (PIL), is a Public Ltd company incorporated on October 17th, 1991. The company belongs to the 'Baid Group' of Rajasthan which has a successful track record in various diverse fields of business. The company was promoted with a view of establishing a composite manufacturing unit for production of variety of plastic
goods and its processing machineries. The company is presently engaged in manufacture of lids for water storage containers, self watering plastic pots for plants, pipe fittings, machineries, dies and moulds for plastic processing, master batches etc. at its plants at RIICO Industrial Area, Heerawala Village, Bassi Dist.Jaipur. The company sells its products under the famous brand name of 'Polycon'. At present the installed capacity of injection Moulded articles is about 150 tonnes and for master batches is about 600 tons and the capacity of manufacturing
machines, dies and moulds is not restricted as the same can be increased substantially just by increasing the volume of inputs. In addition, the company has also been doing market promotional activities for marketing of LLDPE water and chemical storage tanks. The company is having franchisees at various places in India who are manufacturing water and
chemical storage tanks, under the brand name of 'Polycon', under the technical guidance and supervision of the company. PIL is also assisting such franchisees in marketing of the product and also in the supply of
essential raw materials. In addition, the company is engaged in export of plant and machinery used in the manufacturing of water & chemical storage tanks. Also, it exports lids for the storage tanks to countries like Abu Dhabi (UAE) and Jedah.
The company has obtained the right to use the brand name POLYCON from the brand name owners M/s. Baid Rotomoulders Private Limited (formerly Baid Industrial Corporation) vide their agreement dated January 2, 1995. As per the terms of the agreement the licensor has agreed not to give the right of using the brand name it owns to any third party and that
this right of sub-licensing the brand name to any third party rests only with the licensee i.e. PIL. Since the brand name 'Polycon' is being owned by Baid Rotomoulders Pvt Ltd., they will continue to use it for its products. In consideration for use of the brand name PIL has paid a
lumpsum deposit of Rs.1 crore which is adjustable in payment of Royalty. Also, the company has to pay Rs.0.10 per litre of the total capacity of tanks manufactured and marketed by it and its sub-licensee under the licensed trade mark in the licensed teritory. It shall be calculated
at the end of every quarter and shall become payable within next fifteen days. The licence is initially valid for 5 years subject to extension by mutual consent. However, the initial deposit of Rs 1.00 cr shall be adjusted towards the amount of royalty payable which will be in the range of 4%-5% of the selling price of the tanks.
Note: Attention of investors is drawn to the fact that the company has paid a lumpsum of Rs.1 crore as deposit to acquire the right for using the brand name of 'POLYCON' from Baid Rotomoulders Pvt Ltd. in which
Directors/Promoters are interested. This deposit is adjustable against the royalty payment which will be in the range of 4%.-5% of the selling price of the tanks.
The company obtained its certificate of commencement of business on 31st December, 1991. The company commenced its commercial activity from August, 1992 by export of machinery to UAE. There has been no closures/labour problems or delays etc in commencement of commercial
production in the past.
In order to manufacture and market its wide range of water and chemical storage tanks in the middle east countries under the brand name of 'Polycon', the company had set up a joint venture company with Awlad Naseer Corporation, Abu Dhabi (UAE) in the year 1991 under the name of Polycon Gulf United. The company has an equity participation of 25% in
the venture. The products of the joint venture company have been very well accepted in the market and it declared a maiden dividend of 37.50% for the year ended 31.12.94. The financial performance of the joint venture company is as under :
MAIN OBJECTS OF THE COMPANY
The main objects of the company as contained in the Memorandum and Articles of the Association of the company are as under :-
1. To manufacture, trade, export, import, process, mould, design, refine, produce, manipulate, fabricate, erect, provide, technical know how, design and otherwise deal in plant and machinery, turn key projects of Roto moulded water storage tanks, PVC tanks, PVC structural elements and other allied material and to collaborate, participate, finance, manage, hold or otherwise be associated in any capacity in projects, industries, joint venture projects dealing in these articles.
2. To become vested with by change of constitution from partnership firm to a Public Ltd company and continue the business, so far being carried on in partnership under the name and style of 'POLYCON INTERNATIONAL' by the first Directors of this Company including all its assets, rights,
benefits, titles, interest, approvals, registrations, permits, facilities, concessions, sanctions, privileges, licenses, debts, liabilities and obligations of the said partnership business and in connection there with the said firm will cease to function on the incorporation of the Company.
3. To manufacture, process, mould, design, refine, produce, import, export, purchase, sell or to otherwise deal in all kinds of products, goods and merchandise made of HDPE., LDPE.,. poly-propline, polytheline, PVC, plastic, including containers, section, drums, bottles, packing materials, biogas holders, doors, windows, cabins, pipes, furniture, fixtures, gates, parts and accessories.
-Members approved the delisting of its equity shares from Delhi, Jaipur & Calcutta Stock Exchanges.