History of Mangalore Chemicals and Fertilizers Ltd.

History of Mangalore Chemicals and Fertilizers Ltd.

YEAR EVENTS 1966 - The Comp. was incorporated on 18th July, as a private limited Comp. under the name Malabar Chemicals and Fertilisers Pvt. limited In January, the Comp. was converted into a public Comp. and the word private was deleted from its name.

- The object of Comp. is to manufacture naphtha-based fertilisers like ammonia & urea. The urea produced is being marketed under the name 'Mangala Urea'.

- Allotted 3,89,008 No. of Equity shares to promoters, etc. and 2,50,000 No. of equity shares to IDIC.

1968 - Dugal Enterprises Pvt. limited [DELs], the Government of Mysore and International Development and Investment Co. Ltd., Nassau, Bahamas [IDICs] acted as the promoters of & initial investors in the Comp. until June. Subsequently the original collaboration with C and i Gridler International Ltd., Nassau, Bahamas was cancelled by mutual agreement & IDIC also expressed its desire not to participate further in the capital of Company.

- IDIC, however, retained the 2,50,000 No. of equity shares of Rs. 10 each, fully paid-up of Comp. subscribed for by it initially. Thereafter, MSIIDC, [MSCMFs] & Mysore State Agro Industrial Corporation limited [MISAICs] joined as promoters. Rallis India Ltd., also subscribed for Rs. 40 lakhs in the equity capital of Company.

1971 - On 25th August the Company name was changed from Malabar Chemicals and Fertilizers Ltd., to Mangalore Chemicals & Fertilizer Ltd.

- Authorised capital increased. A call of Rs 7.50 per share made on 3,89,006 No. of equity shares.

1972 - Equity shares sub-divided. Paid-up capital before the public issue comprised 1,50,000 Pref. & 52,00,130 No. of equity shares. In November, 1,50,000 Pref. & 72,99,870 No. of equity shares offered at par to the public. Pref. shares redeemable at par after 12 years but before 20 years from the date of allotment. 85 pref. & 41,900 No. of equity shares forfeited.

1979 - The Comp. received a letter of intent for setting up an ammonium bi-carbonate plant with an installed capacity of 3,000 tonnes per annum.

- The Comp. also received a letter of intent for manufacture per annum of 18,000 tonnes of nitric acid, 13,750 tonnes of ammonium nitrate & 3,600 tonnes of sodium nitrate/nitrite.

- A letter of intent was received for manufacture of DAP/NPK formulations for an annual capacity of 63,500 tonnes.

- In order to increase the efficiency of ammonia/urea plants M/s. B.H.P.V. were selected for contract to instal a pure gas recovery plant in association with M/s. Air Liquid of France.

1980 - Forfeited shares reissued/forfeiture annulled in respect of 1450 No. of equity shares each in 1978 & 1979 & 2,550 No. of equity shares during the year.

- 700 forfeited equity shares reissued or forfeiture on these annulled.

1982 - The performance was not satisfactory due to frequent power cuts & demand recession. The ammonia converters modification could not be carried out limiting the ammonia plant load to 85% only.

- The ammonium bi-carbonate plant & additional auxilliary boiler were commissioned.

- The expansion programme of new projects including di-ammonium phosphate plant, terminal for imported ammonia & purge gas recovery unit became more effective by conclusion of major contracts & other financial arrangements & completion of civil works falling within the scope of company.

1984 - As regards the captive power plant, the Comp. signed an agreement in November, with M/s. O.Y. Wartsila AB, Finland for the supply & supervision of erection & commissioning of 6 nos. of diesel generating sets each of 6516 KW rating.

- 500 forfeited equity shares reissued or forfeiture on these annulled.

1985 - The working results were adversely affected by unfavourable market situation & severe competition which was intensified by drought conditions in the country, especially in Karnataka.

- Toyo Engineering Co. Ltd., [TECs], agreed to set up a second DAP plant with a capacity of 63,500 tonnes per annum based on conventional technology & also to supply additional hardware & spares for fertiliser complex free of cost.

- 450 forfeited equity shares reissued or forfeiture on these annulled.

1987 - Production & sales of urea & ammonium bi-carbonate declined due to strike by workmen for 72 days, continuing glut due to adverse market conditions & failure of equipments such as CO2 compressor, urea autoclave nozzle, etc.

- The Comp. undertook several sales promotion activities to improve the demand for products.

- The Comp. proposed to revamp its original DAP plant. PDIL, Sindri [a Government of India undertakings] was commissioned to prepare a economic feasibility report for same. It was also proposed to revamp the existing ammonia & urea plants.

- M/s. UHDE submitted a report pertaining to revamping of ammonia plant & M/s. Stamicarbon of Netherlands submitted a report on urea plants.

- The Comp. proposed to approach IDBI for financial assistance for implementation of revamping project.

- The Comp. embarked upon a scheme to create 100 million gallon capacity reservoir for storing water. Water heat recovery boilers were installed for recovery of heat from fuel gases from captive power plant.

1988 - A 7th DG set was commissioned in December, along with the sophisticated 'WENCOM' system to provide advance warning of abnormal conditions.

- The production of DAP suffered a set back due to non-availability of imported phosphoric acid, that of ABC was affected due to main plant problems. There was an overall production loss of 132 days on Acc. of failure of urea plant HP condenser, fired heater F101 coil failure & the time lost in replacement of syn gas turbine/primary reformer catalyst.

- The Comp. undertook a rehabilitation programme with the help of financial institutions & banks.

- The Comp. undertook rehabilitation of original DAP plant, by making certain modification/addition to the plant to achieve a production of 45,000 tonnes of phosphorus pentoxide.

- Application for letter of intent was made by company during the year. The Comp. also undertook a thorough survey of the existing ammonia & urea plants for increasing their respective capacities.

- The ammonia & urea projects were to be set up by M/s. UHDE India Ltd., & Stamicarbon respectively.

- 30 Pref. shares redeemed on 31st January, 1989. Forfeiture on 3,350 No. of equity shares annulled. Rate of Pref. raised and redemption date extended to 5th October, 1992 & 7th January, 1993.

1989 - The Comp. proposed to replace the internals of ammonia converter with a modified state-of-art basket as it had developed leakages.

- Also, a modernisation plan for DAP II plant was drawn which involved retrofitting the plant with pipe reactor technology.

- It was also proposed to rehabilitate the defunct DAP plant by making appropriate changes in the technology & hardware to produce NP/NPK fertilizers.

- The Comp. proposed to set up phosphoric acid/sulphuric acid plants with foreign collaboration.

- During the year, requisite applications were made seeking letters of intent for manufacture of styrene butadiens rubber, HDPE/LLDPE, LDPE & polypropylene.

- The Comp. proposed to import raw materials for initial production of styrene butadiens rubber, HDPE/LLDPE, LDPE and polypropylene.

- The Comp. proposed to import raw materials for its initial production of above products & later on switch over to materials from the proposed Mangalore Refinery.

- The Comp. proposed to set up a down stream petrochemical plant for production of LDPE, LLDPE, HDPE, polypropylene, SBR, etc.

- 472,62,300 No. of Equity shares issued at par : 71,41,600 shares as rights in prop. 1:2; 1,20,500 shares to employees; 300,00,000 shares in conversion of loans & out-standings & 100,00,000 shares to KSIDC on private placement basis.

1990 - On the basis of bids invited, the State Government also with financial institutions & banks selected UB Group as a partner in management of Company.

1991 - A new high pressure carbonate condenser was installed in the urea plant in December.

- 388,32,702 No. of equity shares issued at par: 225,66,842 shares as rights in prop. 4:5, 34,565 shares to employees, 20,35,870 shares on private placement basis & 141,95,425 shares in conversion of funded interest to financial institutions.

1992 - During October, the Comp. issued 150,00,000 No. of equity shares of Rs 10 each at par on rights basis in the proportion 2:13. Another 7,50,000 shares of Rs 10 each were offered to the employees.

1995

-The chairmen of UB Group & SPIC have reached an agreement under which SPIC will join UB as a co-promoter in the rehabilitation of Mangalore Chemicals & Fertilisers Ltd.

-Submitted a Rs. 300 crores revival package.

-The bagging & transportation of Urea & DAP has come to standstill at the MCF from September due to sudden strike launched by about 45 stitching & packing workers.

-Suspended 10 workers in the first shift who were on strike for last 18 days demanding the termination of loading contractor.

1996

-The Board for Industrial & appointed the Industrial Development Bank of India as an operating agency for purpose.

-The Board for Industrial & Financial Reconstruction [BIFRs] has ordered a change in management of sick Mangalore Chemicals & Fertilisers Ltd [MCFLs] a Comp. promoted by Vijay Mallya Unite Breweries group.

- Appellate Authority for Industrial & Financial Reconstruction [AAIFRs] has dismissed the appeal of Mangalore Chemicals and Fertilisers Ltd [MCFs] as withdrawn.

-Workers union affiliated to Intuc has decided to participate in the open bid to take over the administration of MCF in association with other co-operatives.

-Karnataka Government on 15.2.96 asked the private owned Mangalore Chemicals & Fertilisers limited

1997

-Signed a memorandum of understanding [MoUs] with the MCF workers union revising wages

-Offered to acquire a majority stake in Vijay Mallya sick Mangalore Chemicals and Fertilisers.

-Achieved the highest ever production of 3.42 lakh tonnes urea corresponding to 101 per cent of rated capacity.

-Awarded the prize for best improvement in overall performance for 1996-97 by Fertilizer Association of India.

1998

-The Penambur unit of Mangalore Chemicals & Fertilizers [MCFs] has commenced production after a month-long shutdown due to breakdown of certain critical equipment

-MCF records 44pc rise in sales, net up at Rs 17.33 cr

-Receives Fertiliser Association of India Award for improvement in its overall performance for year 1997-98 according to a press release from the company.

1999

-Financial institutions have rejected a proposal by Vijay Mallya-controlled Mangalore Fertilisers and Chemicals [MFCLs] for a one-time settlement of outstandings

-Dispatched the `first batch' of finished products including superior kerosene oil [SKOs] & high-speed diesel [HSDs] to Hindustan Petroleum Corporation Ltd [HPCLs]

2000

- Board for Industrial & Financial Reconstruction [BIFRs] has sanctioned a rehabilitation scheme for Mangalore Chemicals & Fertilisers Ltd [MCFLs], promoted by UB Group. Also, the Industrial Development Bank of India [IDBIs] has been appointed as the monitoring agency [MAs] to review the progress of implementation of sanctioned scheme.

-Reliefs sought for revival of Mangalore Chemicals and Fertilisers a UB group Comp. were taken up at a high-powered meeting of Industries Department

-Urea plant has been shut down following an accident on February 9 which resulted in the death of two persons.

-Two people were killed & six injured in a gas leak-related explosion at the Panambur unit

-Board for Industrial & Financial Reconstruction [BIFRs] has directed Vijay Mallya controlled sick industry Comp. to submit a comprehensive revival proposal with the means of finance fully tied up.

-Company has received ROC permission

2001

-Wiped off its accumulated losses of Rs 169.39 crore

-Production of urea trucks loaded with Mangala urea rolled out of MCF factory at Panambur

-VRS was introduced as per the BIFR Scheme.

-Urea Production was stopped on 6.3.2001 after achieving the installed capacity.

2002

- Karnataka High Court stayed the govt order on downward revision of urea retention price with retrospective effect

-Organised one of its periodic on-site `mock drills' at its Panambur unit, to help the organisation `to keep people & material in all preparedness to undertake any emergency effectively.

2003

-Approves to voluntarily delist its shares from Mangalore & Madras Stock Exchange.

-MCF negotiation with workers fails

-Awarded ISO 14001:1996, the environmental management system standard certificate, for its fertiliser complex at Panambur in Mangalore.

2004

-Mangalore Chemicals and Fertilisers Ltd has informed that it has filed an application for permission before the Government of Karnataka for closure of its di-ammonium phosphate plant situated at Panambur, Mangalore due to the continued unremunerative nature of its operations.

- SBI Capital Markets appointed as lead arranger for Mangalore Chemicals and Fertilizers to structure funding of proposed Rs 360 crore metallurgical coke production plant

2006 -Mangalore Chemicals and Fertilizers Ltd has informed that the Board of Directors of Comp. at its meeting held on October 27, 2006 has appointed Mr. K Prabhakar Rao, Vice President-Manufacturing as a Whole-time Director of Company.