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Rama Petrochemicals Ltd. Company History and Annual Growth Details

1985 - The Company was incorporated on 28th January, at Mumbai. It
manufactures methanol. It was promoted by the Rama Group of

- The Company entered into a Licence Agreement with Lurgi GmbH of
West Germany and Osterreichsche Hiag-Werke GmbH of Austria,
whereby the Company was granted a licence to operate the methanol
plant based on the latest low pressure technology of Lurgi GmbH.
Lurgi GmbH also would be deputing their technicians for
commissioning the methanol plant.

- The Company entered into a comprehensive agreement dated 16th
October, with Humphreys and Glasgow Consultants Pvt. Ltd.
(HGCL) for provision of technical consultancy services required
for the methanol project.

- Approval from Government was received for enhancement of the
licensed capacity of methanol from 50,000 to 1,00,000 tonnes per

1986 - 70 shares subscribed or by the signatories to the Memorandum of
Association. 88,29,930 No. of equity shares than issued at par
out of which the following shares were reserved and allotted on a
firm basis:

- (i) 35,01,630 shares to non-resident Indian promoters, their
non-resident friends etc.

- (ii) 9,98,300 shares to resident Indian promoters, directors,

- (iii) 4,50,000 shares to UTI and

- (iv) 4,00,000 shares to SICOM. The balance 34,80,000 shares were
offered for public subscription during April-May out of which
4,41,500 shares were reserved for preferential allotment to
employees/workers of the Company and other associate companies in
the group (including Indian working directors).

- Only 1,800 shares out of the preferential quota were taken up.
The balance 4,39,000 shares were added back to the public quota.
8,65,500 additional shares were allotted to the public to retain
over-subscription. 68,127 shares remained to be allotted.

1987 - The Company initiated discussions with alternative suppliers of
technology for selection of a cost effective technology package.

1989 - The Company obtained a letter of intent for the manufacture of
15,000 TPA of 2- Ethyl Hexanol and certain by-products.

- Another letter of intent was received for the manufacture of
30,000 TPA of formaldehyde at the existing location at
Patalganga. Steps were taken for selection of appropriate
technology for the manufacture of the said product.

- 68,127 No. of equity shares of April 1986 public issue allotted.

1990 - It was decided to defer the 2 ethyl hexnol project since a
satisfactory agreement could not be concluded with the technical
collaborators for the project. In view of certain anticipated
changes in the industrial policy, it was decided to review the
proposed formaldehyde project.

1991 - 2,66,210 No. of Equity shares allotted at par to financial
institutions in part conversion of loans.

1992 - During October, necessary approvals were received to issue
31,20,720-15% fully convertible debentures of Rs 100 each on
Rights basis in the proportion 3 debs: 10 equity shares held.

- Each debenture was to be automatically and compulsorily converted
into 5 equity shares of Rs 10 each at a premium of Rs 10 per
share on the expiry of six months from the date of allotment of

- 4,40,690 No. of Equity shares allotted at par to financial
institutions in conversion of loans.

1995 - During the year prices of Methanol decreased globally coupled
with reduced customs duty which led to cheap import of Methanol
had affected the performance of the Company.

1996 - Sales turnover declined to Rs. 50.31 crores due to lock-out of
the factory for 28 days.

1998 - The poor performance as attributed to closure of the methanol
plant for nearly 10 months due to a lock out declared by the

- The company contemplated reorganisation of its business with a
view to greater focus and attention on the product groups and
improve its working results. With this in view, the company
proposed to transfer the Denim division to Rainbow Denim Ltd.

- The company submitted a rehabilitation scheme to BIFR for the
merger of Rama Fertilisers Pvt. with the company.

- Rama Capital & Fiscal Services Ltd. is a subsidiary of the

-Shareholders approved delisting from Ahmedabad Stock Exchange and Delhi Stock Exchange.