- The Company was incorporated on 31st August, at Chennai. The
manufacture of aluminium ingots and alloys from the bauxite reserves
Sheveroy Hills and rolled products. The factory was inaugurated on
July, 1965. The rated capacity was reached only in July 1965, when
the electrolytic pots were commissioned.
- The company entered into a collaboration agreement with M/s.
Montecantini of Italy.
- 50,000 No. of equity shares allotted to directors, etc. 70,000
and 80,000 No. of equity shares allotted to the Madras Industrial
Investment Corpn. Ltd., 20,000 Pref. and 10,000 No. of Equity
allotted to LIC. 63,500 No. of Equity shares allotted to certain
brokers and their constituents, 120,000 No. of equity shares
for allotment to the foreign collaborators for consideration other
cash, out of which 45,000 shares were allotted, and 60,000 Pref. and
1,26,500 No. of Equity shares offered for public subscription
- Further 30,000 No. of equity shares allotted to the foreign
collaborators. First call on partly paid shares made during the
- During 1963, further 45,000 No. of Equity shares were allotted to
collaborators. All shares were fully called up.
- The properzi plant was erected in November. 195 Pref. shares and
3,390 No. of Equity shares forfeited for non-payment of calls.
- The Company executed the lease deeds with Government of Chennai
mining bauxite in 167.51 acres in the Kolli Hills area of Salem
- Out of forfeited shares, 80, 85, 100, 1,270 and 237 No. of equity
shares reissued in 1967, 1968, 1970 and 1971 respectively.
- The Company had taken up a programme in which included
diversification of production to 7,000 tonnes of continuous sheet
casting and 2,000 tonnes of extrusion.
- Alumina production capacity was to be increased from 120 tonnes to
140 tonnes per day.
- The imported extrusion plant was commisioned. The continuous
plant was ordered with French suppliers.
- The redemption date of 1,43,157 preference shares was extended
1st January, to 1st January, 1985 and the rate of dividend was
increased to 11% per annum with effect from 1st January. 657 shares
belonging to the dissenting preference shareholders were redeemed on
- Capacitor banks were installed in order to improve the power
- The casting plant for the manufacture of sheets over 6mm was
to be commissioned during September which was to be followed by the
project for the manufacture of sheets by installing a suitable 4
cold rolling mill with allied facilities.
- The rate of dividend was further increased to 13.5% and redemption
date extended to 1st January, 1990.
- The rolling mill was commissioned.
- The company was brought under the Sick Industrial (Special
Provisions) Act, 1985 with effect from 15th May. The Company
certain proposals for rehabilitation to the Board for Industrial and
Financial Reconstruction (BIFR) with the help of package of reliefs
worked out by IDBI. According to BIFR, the Company became sick only
due to lack of supply of adequate power to the Company.
- Based on the scheme of revival formulated by BIFR, an agreement
entered into between the Company and the Tamil Nadu Electricity
on 20th January. In terms of this agreement, TNEB released to the
Company 46,872 KVA and 28.36 million units per month as against the
BIFR scheme for immediate release of 47,000 KVA and an endeavour to
increase the power supply to 67,000 KVA subsequently. However
additional power cuts were imposed by TNEB within hardly 40 days of
signing the agreement.
- The Company proposed to submit proposal to IDBI for recommending
to BIFR for improving the viability of the Company.
- As per the directions of BIFR, the redemption date was further
extended to 1st January, 1996.
- In view of certain adverse developments, the production activities
were suspended from 1st October, and were restarted from 1st
1995 and aluminium cell house was restarted in March end.
- The Company moved to High Court of Chennai and the Court ordered
of further proceedings in the matter for 8 weeks from 10th July.
- The Company submitted to IDBI another scheme for rehabilitation
envisaging reduction in costs of production of both alumina and
aluminium, utilising among other, excise duty loans and sales tax
deferment for financing the project.
- The Company also managed to secure from the Government of Tamil
substantial reliefs and concessions in respect of payment of
electricity charges and sales tax in order to enable rehabilitation
- The company filed an application before the High Court of Chennai
seeking suitable directions to be issued to the BIFR for considering
the revised rehabilitation scheme to be submitted by the Company to
BIFR and the IDBI on 6th July 1992.
- The High Court of Chennai issued directions to the BIFR to
the revised rehabilitation scheme to be submitted by the Company
8 weeks' time from the date of such submission by the Company and
Company was permitted to file the scheme within 4 weeks.
- BIFR after holding a hearing on 1st September, directed that the
management of the Company should submit to IDBI within a period of
month all informations required by it and IDBI should formulate a
comprehensive and realistic rehabilitation within a period of 90
- Based on a proposal from the Company, BIFR sanctioned a scheme of
rehabilitation on 23rd December. The scheme envisages, change of
management with one-time settlement dues of the banks and financial
institutions interalia to augment alumina capacity from 40,000 to
80,000 TPA relining and change of design for smelter, continuation
package of reliefs agreed by Govt. of Tamil Nadu.
- Pursuant to the direction of BIFR, the Company issued further
capital to the new promoters to the extent of 12,76,000 shares (Rs
12.76 lakhs). BIFR also permitted the new promoters to convert Rs
lakhs from unsecured loans to equity share capital.
- 5,24,000 No. of equity shares allotted to promoters on conversion
- The Company undertook to set up a captive power plant of 75MW for
assured power supply throughout the year for smelter.
- The networth of the Company having turned positive, BIFR delisted
Company from the provision of SIC Act effective 10th September,
- The Company has subscribed to 1,10,00,000 No. of equity shares and
1,00,00,000 equity warrants of India Foils Ltd.
- The Company has splits its face value from Rs10/- to Rs2/-.