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Shree Digvijay Cement Company Ltd. Company History and Annual Growth Details

1944 - The company was incorporated at Jamnagar. The main objective of
the company is to manufacture cement and works mines, quarries
etc. Cement is marketed under the trade name "Lotus".

1949 - During the year the factory commenced production.

1955 - 30,000 No. of equity shares issued as rights in proportion 1:2.

1956 - 40,000 Pref. shares issued at par as rights to Pre. shareholders
in prop. 1:1. 45,000 Right Equity shares issued (Prem. Rs. 17.50
per share: Prop. 1:2).

1960 - A plant for manufacturing asbestors cement pipes and sheets was
originally intended to be installed by the Company's subsidiary,
Laxmi Asbestos Products, Ltd. The Company decided to instal the
plant at one of its Departments. Accordingly, the licence was
transferred to the Company's name.

1962 - 13,500 No. of equity shares issued at a prem. of Rs. 50 each to
John Manvile Corporation.

1963 - 50,000 Right Equity shares issued. (prem. Rs. 100 each prop.
1:3). Further 1,500 No. of equity shares issued at a prem. of
Rs. 50 per share to John Manvile Corporation.

1966 - 49,878 Bonus Equity shares issued in the proportion 1:4.

1979 - Laxmi Asbestos Products Ltd., is a wholly owned subsidiary of the
Company. Shree Satyanarayan Investments Co. Ltd., became a
wholly owned subsidiary of the company. As per the scheme of
Amalgamation of Hastings Mills, Ltd., with the Company the Fort
William Co., Ltd. became a subsidiary of the company.

- 49,876 Bonus Equity shares issued in the proportion 1:5.

1980 - The Company undertook to change one of its kilns to dry process
with induction of latest precalcinator technology. The Company
was granted a letter of intent for the resultant increase in
capacity by 4.85 lakhs tonnes.

1981 - A letter of intent was received for expansion of asbestos cement
sheet capacity by 36,000 tonnes. This project was in an advanced
stage and it was expected to be commissioned shortly. Industrial
licence was also received for increasing the asbestos cement
pipes capacity by 30,000 tonnes per annum.

- Johns Manville Corporation, U.S.A. are the technical consultants
of the Company for the asbestos cement project. They have also
been appointed as sole selling agents for the Company's asbestos
products for the Middle East and African countries.

- Government of Gujarat agreed in principle to sanction mining
leases, for limestone, necessary to implement the Modernisation
and expansion scheme.

1982 - In Synthetic Fabrics Division Labour indiscipline and low
productivity adversely affected the working. A lock-out was
declared from 30th March, 1983. The lock-out was lifted on 25th
July, 1984.

- The Production in Jute Division was affected due to continuing
low productivity and labour indiscipline which led to lock-out
from 26th February. The operations could be resumed only from
19th August.

- Government introduced partial decontrol of cement from 28th
February, and also increased the retention price for levy cement.

- A scheme was formulated in the Synthetic Fabrics Division for
installation of new automatic looms and jute dyeing machine in
the process house to improve plant efficiency.

- The Company drew up a modernisation scheme for change over of one
of the kilns from wet to dry process with induction of
precalcination technology.

- Pursuant to the scheme of amalgamation Hastings Mills, Ltd., was
amalgamated with the Company with effect from 1st April. As per
the terms of the scheme, the entire undertaking of Hastings Mills
comprising of (a) Jute Mill, (b) Synthetic Fabrics Division, (c)
Coir and Felt Division and (d) Investments, etc., were
transferred to the company. In consideration, the Company issued
to the shareholders of Hastings Mills 40,000 No. of equity shares
of Rs. 100 each, 35,000 - 13.5% redeemable cumulative preference
shares of Rs. 100 each and 25,000 - 15% unsecured debentures of
Rs. 100 each.

- 40,000 No. of Equity shares and 35,000 - 13% Pref. shares issued
without payment in cash and allotted to members of Hastings
Mills, Ltd., on its merger with the Company with effect from 1st

1983 - The Company was granted a letter of intent for installing a fresh
cement capacity of 12 lakh tonnes per annum in two phases of 6
lakh tonnes each at Beawar in Rajasthan. A new company, Shree
Cement Ltd., was formed to implement Beawar Cement project.

- The Cement production went down due to load shedding and power
trippings at Digvijaygram works and closure for a part of the
year of the clinker grinding plant at Mumbai.

- The company decided to instal two imported diesel generating sets
of 5000 KVA each to cope up with load sheddings and power cuts.

- The Company procured 61,566 No. of equity shares of Rs. 100 each
in Digvijay Investments, Ltd., out of the shares offered for sale
at par by the West Coast Paper Mills, Ltd. Therefore, it became
a subsidiary of the Company.

1984 - The production of cement further dropped due to dismantling of a
kiln of a capacity of 2 tonnes from 30th June, under the
modernisation scheme.

- As on 31st December, the Company's fixed assets except motor
vessels were revalued and the net surplus arising out of this was
credited to revaluation reserve.

1986 - The overall working was affected due to fall in market price as a
result of creation of new capacities and relaxation in levy quota
by Government. The lock-out in the Mumbai Cement mill was lifted
on 20th October, on settlement with the employee's union.

- The Company's application for financial assistance for
modernisation and rehabilitation was at an advanced stage of
consideration by financial institutions and the bank.

- Synthetic Fabrics Division management was forced to declare a
lock-out effective from 15th February, following labour unrest
and operational constraints.

- The prospects for products marketed under the brand name
"RILAXON" appeared encouraging.

1987 - Production of clinker and cement declined due to low offtake,
hike in raw materials costs and power tariff etc.

- In Jute Division the working results were unsatisfactory due to
depressed market conditions, on account of drought and decline in
demand from food and fertilizer sectors.

- The Company filed a petition in the Gujarat High Court for
conversion of 79,940 - 5% Redeemable Cumulative Preference Shares
of Rs. 100 each into Non-convertible debentures of Rs. 100 each
on 1:1 basis effective from 1st January, 1988. The Scheme was
approved and accordingly, 79,940 - 14% non-convertible debentures
of Rs. 100 each were issued.

- Sibpur Mills, Ltd. was incorporated on 23rd June, as a subsidiary
of The Fort William Co., Ltd. with the object of manufacturing
jute goods and steel wires and ropes.

- As on 31st December, the Company's assets were revalued and the
net surplus arising out of this was credited to the revaluation

1988 - The Company became a sick industrial company within the meaning
of section 3(i) (o) of the Sick Industrial Companies (Special
Provisions) Act, 1985.

1989 - The improved unit realisation in cement sales was largely
neutralised due to rise in cost of production.

- Sheet production showed a marginal improvement while that of
pipes suffered a set back. The demand for pipes had declined so
much that the capacity utilisation in the industry was dropped to
around 35%. The working of the division suffered also due to
steep increase in the cost of imported asbestos fibre.

- Production of carpet backing cloth was curtailed due to
unremunerative market conditions. The raw jute prices also
increased substantailly which adversely affected the working of
the Jute division.

- Dividend rate on Pref. shares raised from 13 1/2% to 14%
effective from 1st April.

1990 - With the decrease in raw asbestos fibre supplied by MMTC and
devaluation of Rupee vis-a-vis major currencies, the working of
the division was expected to be constrained.

- An agreement was reached with the unions for voluntary retirement
of workmen from the Synthetic Fabrics Division. The Division
continued to remain closed.

- An agreement was signed with labour unions for increasing
production in the Coir and Felt division.

1991 - During the Ist quarter of the unit had to declare a lock-out from
18th April, to 6th May, following labour trouble. Production
was again affected due to suspension of work at the mill from
28th January, 1992 to 17th March, 1992.

- At a hearing on 10th July, BIFR advised the Company to disinvest
its holding in other companies which was not acceptable.
Therefore, the company appealed to the Appellate Authority for
Industrial and Financial Reconstruction (AAIFR) which kept the
matter pending.

- The Company had represented to the AAIFR that on the singular
ground of profit earned by the Company, the Company is out of the
purview of the Sick Industrial Companies (Special Provisional)
Act, 1985 and that the reference by the Company to the BIFR be
considered infructuous and the Company be declared a non-sick

- 3,39,255 Rights equity shares issued at par (prop. 1:1).
Another 16,961 No. of equity shares issued to the employees.

1992 - Production decreased due to labour problem. The Company's
application for modernisation was sanctioned by financial
institutions and steps were taken to implement the scheme.

1994 - Domestic sales were affected by epidemic conditions in Surat.

- Production and sale of pipes was lower due to lack of adequate

- Operation of the Coil and Felt division was suspended from 19th
March, 1995 owing to indicipline and productivity norms being not
followed by the workers.

- The Company approved a scheme of arrangement for transfer of four
division of the Company viz. Ahmedabad Cement Mill, Fibre
products division, Shreeram Silk (Synthetic Fabrics) division and
Coir & Felt and (ii) Fort William Co. Ltd. to Gujarat Composites
Ltd. (GCL) with effect from 1st July. In consideration it was
proposed to allot one equity share of Rs. 10 each of GCL for
every three equity shares of Rs. 10 each held in the company to
the shareholders of the Company.

- Equity shares sub-divided into Rs. 10 paid-up.

1995 - Coir and Felt Production was suspended due to work suspension
which was lifted from 3rd September, 1996.

1996 - Production and sales of fiber was lower due to lack of adequate
orders from State Water Boards.

- Johns Manville Corporation, U.S.A. are the technical consultants
of the Company for the asbestos cement project. They have also
been appointed as sole selling agents for the company's asbestos
products for the Middle East and African countries.

- 5,00,000 No. of equity shares allotted at par to the FIs on
conversion of rupee loan.

-Shree Digvijay Cement Company Ltd has informed that Shri K C Birla has been appointed as an Additional Director on the Board of the Company.

-Shree Digvijay Cement Company Ltd Issues Rights in the Ratio of 18:1


- Cimpor acquired management control of Digvijay.

- Directors have been appointed on the Board of the Company:
Mr. Leonard D' Costa
Mr. Napoleon De la Colina
Mr. Luis Filipe Sequeira Martins.


- Appointed Mr. Suman Mukherjee hitherto working as Chief Executive Officer, as a Managing Director of the Company.


- Mr. Luis Miguel Da Ponte Alves Fernandes and Mr. Antonio Carlos Custodio Do Morais Varela, as additional Directors of the Company.


-Mr. Kumaresan Arcot has been appointed as an Independent Director to fill up the casual vacancy caused by the resignation of Mr. Napoleon De la Colina.