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Fenoplast Ltd. Company History and Annual Growth Details

FPL was incorporated in 1975 by Sarvasri H. Kishan, and K. Seshagiri Rao as a Private Limited Company. The Company was a deemed Public Limited Company from 16-7-90 onwards. However the Company was converted into a regular public company under Section 31/44 of the Companies Act, 1956 on 2nd August 1994 in terms of special resolution passed on
29-3-94 under section 31(1)(a). Compary started its operations in 1977 by setting up PVC leather cloth unit with an installed capacity of 30, lacs sq.mtrs per annum at a cost of Rs. 48 lacs at Patancheru in Medak District with a term loan/DPG assistance from Canara Bank to an extent of Rs. 25 Lacs and foreign currency loan of Rs. 2.00 lacs from APSFC Ltd. The success of first unit encouraged the company to set up a second unit in 1983 at Nandigaon village in Sangareddy Taluk, Medak district with an installed capacity of 30 lacs meters per annum of PVC
leather cloth at a project cost of Rs. 121 lacs with the financial assistance of Rs. 46 lacs from APIDC. The Company received awards as the second best exporter in the PVC leather cloth Industry for 2 consecutive years i.e 1991-92 and 1992-93 from the Plastic and Linoleum export Council (PLEXOCIL), an agency under the aegis of the Ministry of Commerce, Government of India. Encouraged by the success of two units of PVC leather cloth, the Company under the diversification programme took up the manufacture of PVC calender film. The cost and means of finance for the first stage of the project as appraised by IDBI vide
letter No. 11639/PFD(391) dated March 26th, 1991 was as follows:

Particulars Amount(Rs. in Lakhs)

Cost of the Project (1st Stage)

Land and Site development 10.00

Building 55.00

Plnt & Machinery 1050.00

Misc. Fixed Assets 90.00

Margin Money for W/Capital 55.00

Pre-operative Expenses 30.00
Total 1290.00
Means of Finance (1st Stage)

Term Loans-IDBI 533.00
-ICICI 266.00
-IFCI 266.00
------- 1065.00

Internal Accruals 225.00
Total 1290.00

The scheme envisaged installation of 'C-7 Calenderette' line at Nandigaon village, Sangareddy Taluq, Medak district to produce 5000 TPA of rigid PVC film. The Calenderette was originally imported from M/s Battenfeld Gmbh, West Germany, by M/s Bhubansri Plastic Indusides Ltd, (BPIL), Calcutta, under project finance from IDBI. Subsequent to
the import of calenderette BPIL expressed its inability to go ahead with the implementation of the project due to financial problems. Meanwhile, as the customs authorities insisted on payment of import duty on the equipments lying in the bonded warehouse, IDBI paid the import duty and took possession of the equipment. Since then, IDBI negotiated with several parties for selling the imported equipments
and finally the offer made by M/S Fenoplast Limited, for the purchase of the entire Imported equipment was accepted by IDBI in August 1988. It took almost two years for the Company to complete all legal formalities for shifting the Plant & Machinery from Calcutta port to Plant site. The Company has successfully implemented the project and
commenced commercial production from August 1993. As on date the total out standings to the financial institutions stand at Rs.1393.63 Lakhs i.e including an amount of Rs.332.16 Lakhs of funded interest, which was granted by the institutions. The total term loan utilised/availed by the Company amounted to Rs.1061.47 Lakhs. The difference of Rs.3.53 Lakhs represents unutilised IBRD line of credit. The interest was funded due to a delay in the implementation of the project due to various reasons such as project licence transfer, customs clearance, import restrictions etc.

The working capital has been assessed by the company's bankers who include M/s Canara Bank, M/s CanBank Factors Ltd, M/s Syndicate Bank and M/s Laxmi Vilas Bank Ltd. The present limits are as follows:

BANKS (Rs Lacs)

1. Canara Bank 105

2. CanBank factors Ltd 200

3. Syndicate Bank 60

4. Laxmi Vilas Bank Ltd 35
Total 400

The Company has applied for additional limits of Rs 175 lacs for which sanction is awaited. No problem is foreseen for the same. The total working capital margin (Stage 1 & 2) is Rs 411 lacs.

The total Current Assets of the project estimated as at 31-03-96 is Rs 1645 lakhs. As per the Tandon committee, 25% of the Current assets should be taken as Margin money for Working Capital. For the PVC Film Industry, Tandon Committee norms like No. of months inventory and
receivables are not applicable. The margin money for the working capital is estimated as under:-

25% of Rs 1645 lakhs 411.00

Less : Already provided in phase I of project 55.00
Now provided in phase II of project 356.00


- Fenoplast Ltd has informed that the Board of Directors of the Company at its meeting held on March 02, 2008, inter alia, has approved the appointment of Dr. H Anuradha as an additional Director, subject to such permissions as may be required from the authorities.