Incorporated in 1979, Indu Nissan Oxalic Chemicals (INOC) was promoted by Indo-Nippon Chemicals and its associates for manufacturing oxo-alcohols and plasticisers for poly vinyl chloride. The Rs 20 cr plant is located at Bajwa, near Vadodara in Gujarat and was part-financed by a public issue of Rs 28.25 lac equity shares of Rs 10 each in Jul.'81. INOC, the only company to manufacture decanol, uses the latest technology to manufacture oxo-alcohol through the synthesis gas method which ensures increased plastisol viscosity and improved heat stability.
However during the 15-month period ended Mar.'89, due to a surge in raw material prices coupled, a sharp decline in the value of the rupee and loss of production for two months due to an accident, margins were considerably reduced. In 1990, the company undertook an expansion and modernisation programme to enhance the capacity to 30000 tpa at a capital outlay of Rs 30 cr which was financed partly by a rights issue in Apr.'89.
During 1996-97, INOC installed a new stream of plant and machineries, common utilities and offsite facilities so as to produce further 30000 MT of oxo alcohol per year.
The company was forced to shut down production since September'99 due to the removal of import restrictions by the World Trade Organization (WTO) as the imported prices of similar alcohols touched much lower than the company's variable cost. The operations were severely affected due to dumping made by the Foreign suppliers. Due to delay of restructuring of the finance the plant was remained closed during 2001-02.