Electrosteel Castings Ltd Company History

The Company was incorporated on 26th November, at Rajgangpur. The

Company Manufacture steel castings, grinding media and spun-cast iron

pipes.

All shares issued for cash. 1,50,000 shares each subscribed by

Orissa Cements, Ltd., and Dalmia Cements (Bharat), Ltd. The remaining

3,050 shares were subscribed by the Directors, their friends and

associates.

46,950 shares subscribed for in cash by Directors, their friends and

associates. 50,000 shares subscribed for in cash by the Industrial

Credit and Investment Corporation of India, Ltd.

Dalmia Cement (Bharat), Ltd., and Orissa Cements, Ltd. released out

of their holdings 2,00,000 equity shares of Rs 10 each at par to the

public during May. The release was made to the public for getting the

Company's shares listed on the Stock Exchange.

4,00,000 Right Equity shares offered at par in the prop. 1:1. The

offer wash made during 1960. The shares were fully taken up by 1961.

Towards the end of the year, the name of the Company was changed from

Dalmia Iron & Steel, Ltd., to Electrosteel Castings Ltd.

The Company undertook to set up a new integrated electric steel

melting shop and wire rod mills in Ghaziabad, U.P., at a cost of about

Rs 2 crores.

The project envisaged setting up of a steel melting shop with two

10-12 tonnes electric steel melting furnaces, a twin-strand continuous

casting machine and a high speed steel rolling mill to roll billets

into carbon steel wire rods in coils.

Government issued a fresh licence for the manufacture of 36,000

tonnes of steel ingots/billets per annum at Ghaziabad.

There was a fall in the production in pipes mainly due to

non-availability of raw material resulting in frequent stoppage of

production.

Elcast Finance Pvt. Ltd., and Escal Finance Services Pvt. Ltd.,

became subsidiaries of the Company.

Operations were adversely affected by acute shortage of basic raw

materials viz. Pig Iron. The shortage of pig iron adversely affected

the production of spun iron pipes.

The Company proposed to modernise its melting technology with a view

to reducing dependence on pig iron and also achieve reduction in the

cost of production of pipes.

During the year, the Company undertook to set up a new unit at

Khardah for production of ductile iron pipes with an annual capacity of

60,000 tonnes per annum.

During September-October, the Company issued 4,00,000-14% secured

partly convertible debentures of Rs 170 each of which the following

debentures were issued on preferential allotment basis: (i) 20,000

debentures to employees (including Indian working directors)/workers of

the Company and 64,000 debentures on rights basis in the proportion 1

debenture: 25 equity shares. The balance 3,16,000 debentures, along

with 15,450 debentures not taken by the employees, were offered to the

public. Additional 60,000 debentures were allotted to retain

over-subscription (50,4000 debentures to the public and 9,600

debentures to the shareholders).

Rs 70 of the face value of each debenture was to be converted into 2

equity shares of Rs 10 each at a premium of Rs 25 per share. The

non-convertible portion of Rs 100 of the face value of each debenture

was to be redeemed at par at the end of the 7th, 8th and 9th year from

the date of allotment in three instalments of Rs 30, Rs 30 and Rs 40

respectively.

8,00,000 Bonus Equity shares issued in proportion 1:1 on 27.6.1989.

9,20,000 No. of Equity shares allotted (prem. Rs 25 per share) in

part conversion of 14% debs.

The Company issued 25,20,000 - 15% secured partly convertible

debentures of Rs 160 each on rights basis to the equity shareholders in

the proportion 1 debenture: 1 equity share held. All were taken up.

Another 1,26,000 - 15% secured partly convertible debentures of Rs

160 each were offered to the employees of the Company on an equitable

basis. Only 7,600 debentures taken up. The balance 1,18,400

debentures not taken by employees were allowed to lapse.

Part A of Rs 60 of each debenture was to be automatically converted

into one equity share of face value of Rs 10 each at a premium of Rs 50

on 31st March, 1993. Accordingly 25,27,600 No. of equity shares were

allotted.

Part B of Rs 100 will be redeemed in five equal annual instalments of

Rs 20 each beginning from the fifth year from the date of allotment.

A new Ductile Iron pipe plant was being set up at Elavur with an

installed capacity of 30,000 tonnes of D.I. pipes per annum.

The performance of the Ghaziabad unit was affected due to increase in

cost of production and stiff competition.

During December 1995/January 1996 the company offered 30,28,560 - 17%

partly convertible debentures (PCDs) of Rs 210 each on right basis to

the existing shareholders in the ratio of three debentures for every

five equity shares held. (All were taken up).

Part `A' of each debenture would be converted into one equity share

of Rs 10 each at a premium of Rs 50 per share on 1st April 1996. Part

`B' of Rs 150 (non-convertible portion) would be redeemed in three

equal annual instalments of Rs 50 each on sixth year from the date of

allotment.

The Company proposed to diversify into other castings, more

particularly, ductile Iron pipe fittings which was expected to improve

the profitability.

With a view to manufacture high chrome alloy steel grinding media

under collaboration arrangement, the Company undertook to establish

separate independent facilities at Grinding division. The Company also

proposed to establish a ne unit near Chennai for grinding media in view

of its locational advantage.

The Company proposed to put up a pig iron plant at Khardah where the

pipe plants are located at an estimated capital cost of Rs 55 crores.

It is also proposed to provide facilities at Elavur plant for making

Ductile iron pipes in addition to the current production of cast iron

pipes at an estimated cost of Rs 20 crores.

The company had a technical collaboration with Luitpoldhutte AG and

Technocomplex GmbH, both of Germany who have provided the technical

basic manufacturing and process know how with technology for moulding

and annealing DI and CI pipes.

The company is engaged in the manufacture of cast iron and ductile

iron pipes at its plant in Khardah in West Bengal. The company has

seen demand increase continuously for its products leading at

consistent improvement in performance.

A forty year old company manufacturing Ductile Iron (DI) and Cast

Iron (CI) pipes, Electrosteel Castings Ltd., is the only Indian

manufacturer of DI spun pipes conforming to international standards.

The company proposes to set up its manufacturing facilities for

ductile iron pipe in Gujarat.

The company has closed its Ghaziabad unit in September due to a steep

hike in electricity tariffs and unviability of the factory.

Electrosteel Castings Ltd, one of the largest manufacturers of cast

iron spun pipes in the country, has decided to relocate its Rs.55-crore

ductile iron pipe (DIP) project from Elavur in Tamil Nadu to Kolhapur

in Maharashtra. The Elavur unit currently manufactures cast iron

pipes.

Electrosteel had commissioned a mini-blast furnace in September 1996

which had helped it to increase operating profits by nearly 108 per

cent in 1997.

The company has set up a, 1,10,000 TPA cast iron pipe unit in

Kohlapur which would be a backward integration project to the ductile

iron pipe unit.

The Board of Electrosteel Castings Ltd. has recommended issue of

bonus shares in the ratio of 1:1.

Crisil has assigned the `AA+' rating to the Rs 100 crore

non-convertible debenture programme and the `P1+' rating to the Rs

75-crore commercial paper programme of Electrosteel Castings Ltd.

The Company has proposed a bonus issue in the ratio of one for one by

capitalising Rs 8,07,61,600 out of the share premium account.

Electrosteel Castings Ltd has informed that Mr. Uddhav Kejriwal has been appointed as Additional Director of the company at its meeting held on June 16, 2003. He has also been appointed Wholetime Director subject to approval at the ensuing Annual General Meeting of the company to be held on September 01, 2003.

Electrosteel Castings Ltd has enhanced its presence in the European market through

setting up a wholly owned subsidiary in Spain.

Electrosteel Casting's Board has approved for setting up a Coke Oven plant at Haldia

with a capacity of 35,000 tonnes per annum along with a capacity of 150,000 tonnes of

coke per annum.

Electrosteel Castings Ltd has informed that The Stock Exchange - Ahmedabad (ASE) has delisted the equity shares of the Company from their Stock Exchange with effect from December 08, 2003.

Electrosteel Castings Ltd has informed that "Mr. Sanjeev Churiwal, Chief Finance Officer has been appointed as Company Secretary of the Company with effect from 22.01.2007 by the Board of Directors of the Company in its Meeting held on 22.01.2007 in place of Mr. S.Y. Rajagopalan, Company Secretary. Necessary return to this effect has already been filed with Registrar of Companies, Orissa on 12.02.2007. Mr. Sanjeev Churiwal has also been appointed as Compliance Officer of the Company with effect from 22.01.2007".

The Company has splits its face value from Rs10/- to Rs1/-.

Electrosteel Castings Ltd has appointed Mr. Vyas Ralli Mitre as Wholetime Director w.e.f. December 21, 2009.

Electrosteel Castings Ltd - Qualified Institutional Placement.

Electrosteel Castings Ltd recommended a dividend of Rs. 1.25 per share (i.e. 125%), subject to approval of shareholders.

Electrosteel - Enters into Joint Venture Agreement (JV) with Dart Energy Ltd.

Mr. P. S. Nagi, Associate Vice President (F&A) has been appointed as the Compliance Officer of the Company.

Mr. Anand Kumar Kanodia has been appointed as Chief Financial Officer and Company Secretary of the Company.

Board recommended a Dividendof Re. 0.50 per share (i.e. 50%) subject to approval of the Shareholders.

Electrosteel Castings Ltd. has appointed Ms. Kavita Bhavsar as Company Secretary and Compliance Officer of the Company .

Board recommended a Dividend of Re. 0.65 per share (i.e. 65%), subject to the approval of the Shareholders.

Company has commenced commercial production at its Ferro Alloy Plant (1 No. 9 MVA Submerged Electric Arc Furnace), set up at Haldia, District Purba Midnapore, West Bengal.

Expansion of Captive Power Plant at Haldia with Waste Heat Recovery Boiler

Srikalahasthi Pipes Limited is merged into Electrosteel Castings Limited

.