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Sterling Biotech Ltd. Company History and Annual Growth Details

The Company was incorporated on 23rd March 1985, in Mumbai , India as
Pluto Exports & Consultants Limited and obtained its Certificate of
Commencement of Business on 19 April 1985 under the Companies Act 1956.
The Company changed its name to Sterling Tea and Industries Limited on
24 June 1991 when it entered the tea plantation business. Its name was
a subsequently changed to Sterling Biotech Limited with effect from 29
March registered with the Registrar of Companies in Maharashtra and its
registered office is at 43, Atlanta, Nariman Point, Mumbai 400 021

Mr. Nitin Sandesara, Chairman and Managing Director of the Company
together with his father Mr. J.C. Sandesara, joined the Board of
Directors of the Company in 1989. The present Promoters were amongst
the original investors of the Company, and have held shares since 1985.

The Company is an existing, profit making, dividend paying Company
engaged in tea plantation having over 600 acres of tea gardens and tea
processing with an installed capacity of 3200 tpa in District Nilgiris,
Tamilnadu. The Company's performance since commencement of operations
in 1989 has shown impressive growth with turnover and net profits
increasing from Rs.279 lakhs and Rs.55.63 lakhs in 1989-90 to Rs.2402
lakhs and Rs.643 lakhs respectively in the year 1993-94. Hence the
turnover has increased by 8.6 times and net profit by 11.6 times during
last four years. The Company has paid uninterrupted dividends since
1990 from 20% to 50% and also issued 1:1 bonus during 1991.

A rights issue aggregating to Rs. 200 million and public issue
aggregating to Rs.585 million took place in 1995.

Sterling began its operations as a trading company , changing its focus
in 1991 to the manufacture of tea. In 1991 when Sterling first entered
the tea business, turnover and net profit were Rs.28 million and Rs.5
million respectively. The tea operations experienced substantial growth
during the early 1990s. In 1995 as part of an overall growth strategy
Sterling's management identified gelatine as a high niche and a high
growth area, and in 1997 the Company diversified into the production of
pharmaceutical grade gelatine. The Company decided to focus on gelatine
production based on the rationale that not only was gelatine in short
supply, but it also has tremendous growth potential due to its end-use
applications being in the growth industries of food, pharmaceuticals
and photography.

The Company successfully commissioned its first gelatine production
production facility, with an installed capacity of 2,200 MT, at
Karakhadi, Dist Vadadora in 1997 and soon reached 100% capacity
utilization. Capacity was increased to 2600 MT pa in the July 1999 and
further augmented to 4000 MT pa by July 2000, an increase of 80% in the
space of 2 years. The facilities were operational at near or more than
100% capacity utilization. The Company also entered into a technical
collaboration in 1995 with Croda Colloids Limited of the United
Kingdom, one of the world's leading gelatine manufacturers.

The success of the gelatine business, together with governmental
policies designed to liberalise the business environment contributed to
a shift in the Company's overall business strategy. As a result of the
governmental policies, the Company anticipated that tea industry would
suffer extreme competition and slow growth. Accordingly the Company
decided to exit the tea business entirely, and this was sold off in

In 1995, a rights and public issue took place to part finance capital
expenditure plans for setting up the Company's first gelatine
production facility. The facility proposed was 2,200 MT p.a. The
Industrial Finance Corporation of India, at the time a leading Indian
financial institution, appraised the project. Sterling entered the
gelatine market during 1996-1997 with the establishment of its state of
the art facility plant for the manufacture of pharmaceutical grade
gelatine at Karakhadi, Dist Vadodara, with an initial capacity of 2,200
MT p.a.. which reached 100% capacity utilization in 2001.

The Company raised the capacity to 2,600 MT p.a in July 1999. By this
time, profitability was increasing and accordingly capacity was further
augmented to 4,000 MT p.a by July 2000. Thus, capacity for gelatine
production was augmented by more than 80% (from 2,200 MT to 4,000 MT)
in the space of 2 years. The plants are also operational at near or
more than 100% capacity utilization.

To further its vision of being one of the top 5 companies in the global
production of gelatine, in June 2000 the Company initiated an expansion
facility with an installed capacity of 4,200 MT p.a. at the same
location in Dist Vodadara, India. This facility also concentrates on
pharmaceutical grade gelatine and is able to derive benefits of scale.
The Company has an installed capacity of 8,200 MT p.a. to produce
pharmaceutical grade gelatine.

Following the completion of this facility, the Company now considers
itself the largest producer of pharmaceutical grade gelatine in Asia, a
claim which is based on industry knowledge and the nature of the
gelatine industry.

Quality Certifications.

In accordance with the Company's policy to achieve and maintain the
highest standards of quality the Company has the following quality

Kosher Certifications - this certifies that the Jewish population can
consume Sterling's gelatine and that the inputs used for gelatine
production are in accordance with the religious standards of the Jewish

Ifanka Certification - this is required for Halal certification, which
certifies that the gelatine is manufactured using Halal-defined
processes and can be used by the Muslim population.

HACCP (Hazardous Analysis and Critical Control Point) Cerification -
certifies the manufacturing process with the highest and most
consistent quality and safety of product.

ISO 9001 - this certifies that the production process is in accordance
with standards laid down by the International Standards Organizations.

ISO 14001 - this certifies that the environment management system
conforms to the Environmental Management System Standard.

EDQM (European Directorate for Quality of Medicare) - This is a
certification issued by the European Directorate for quality of
Medicine that is essential for selling pharmaceutical gelatine in the
European Union, The Phamacopoeia is a set of guidelines and standards
of the production of medicines issued by the EDQM and has the force of
law. EDQM audits the producers for conformity, In addition the
producers must provided a quantitive BSE risk assessment.


The main objects of the Company as set out in its Memorandom of
Association are as under.

1. To carry on the business as manufacturers, researchers, developers,
creators, buyers, sellers, importers, exporters, refiners, dealers,
agents, wholesalers, retailers and distributors of all kinds of
biotechnology products and all products developed or to be developed in
the future using biotechnology and other related and non-ralated
btechnologies including technologies that may be developed in the
future, propriety medicines, pharmaceuticals, health foods and foods of
all kinds, all kinds and forms of organic and inorganic chemicals
including gelatine of all kinds and forms, including its amalgams,
derivative and by products, persticides, acids, alkalies, natural and
synthetics waxes, dyes, paints, pigments, oils, varnishes and resigns,
to carry on the business of manufacturing bioinformatics diagonistics
tools, all medical engineering equipments along with software
developments and tools relating to genome, genomic, genotype, genetic
or any areas relating to genetic engineering and to patent all original
research, procedures, methods products and by-products, technologies
and software developed by the Company.

1A To export and promote exports of commodities, corps minerals, raw
materials, semi and manufactured products, goods and ware plant,
machinery, tools and equipment, fabrics made from natural or artificial
fibers or a blend of natural and artificial fibers, garments, apparel,
foods and beverages, canned provisions, raw cotton manufactures, raw
jute and jute manufactures, raw wool and wool manufactures, raw silk an
silk manufactures, textile made out of natural and artificial fibers
handloom textiles, cottage industries, were cotton waste, tea, minerals
an ores, ferrous and non-ferrous metals, metal manufactures, coffee,
tobacco and tobacco manufactures, spices, shoes and leather ware
timber, automobiles and trucks, diesel engine, pumps, agricultural
implements, electric motors, transformers, switchgears and accessories,
building, hardwares, furniture, electrical appliances, paper and paper
products, machinery and machine tools, dyes, chemicals, colours, paints
varnishes, books and stationery items glassware, pottery, tableware,
scientific instruments, bicycles auto scooters, automibile and truck
spare parts, synthetic products, rubber manufactures, tyre, cords,
tubes, typewriters, refrigerators, office steel furniture, equipment
and appliances and other articles, products, material and substances to
all parts of the world, particularly, non-traditional commodities to
non-traditional destinations.

2. To import all types of commodities, crops, minerals, raw materials,
semi and manufactured products, Goods and ware, plant machinery, tools
and equipment, all types of fabrics made from natural or artificial
fibres of a blend of natural and artificial fibres, garments, apparel,
feeding stuffs, foods and beverages, canned provisions and to carry on
any trading or manufacturing business or operations and deal in all
types of materials, minerals, substances, products, goods, articles and

3. To act as financial consultants, management consultants and provide
advice, services, consultancy in industrial public relations,
scientific, technical, direct and indirect tax action and other leview,
statistical, accountancy, quality control and data processing.

SUBSIDIARY OF THE COMPANY At present the company does not have any


-Sterling Biotech commissions expansion project for manufacture of Gelatin.

-Sterling bags an export order for supply of Gelatin.


-Sterling Biotech obtains Rs.5.5cr order for supply of gelatin for Cardiac Health Inc.

-Sterling changes its Biotech symbol from 'STERLINTEA' to 'STERLINBIO'.

-GDR Issue of the company listed on Luxemburg Stock Exchange .

-Issued Global Depository Receipts (GDRs) worth $14.85 million in the international markets.

- Closed the issue of 2,250,000 Global Depository Receipts (GDRs) each representing 6 underlying each shares of Rs.2/- each Offer Price of US$6.60 each aggregating to US$ 14,850,000/-


-Sterling Biotech acquires gelatine biz of Rallis for Rs 47 cr

-HSBC Financial Services (M.E.) Limited acquires 1,67,300 shares amounting to 0.1954% of the total paid up capital of Sterling Boitech Ltd.

- Delists equity shares of the company from the Vadodara Stock Exchange (VSE) with effect from August 16, 2004


-Sterling Biotech Limited has appointed Shri Chetan J. Sandesara as Joint Managing Director of the Company w.e.f. July 15, 2008.