Incorporated on 7 Apr.'83, Oswal Agro Furane (OAFL) was promoted by PSIDC, Chandigarh, and Oswal Agro Mills. The company is managed by Abhey Oswal, managing director, who also has interests in Oswal Agro Mills and Bindal Agrochem.
OAFL came out with a Rs 8.82-cr issue in Sep.'86 to set up a 100% EOU to manufacture furfural and edible rice bran oil at a total cost of Rs 51 cr. The company manufactures and sells furfural, edible rice bran oil, de-oiled meal cake, processes paddy, rice and rice husk. The entire quantity of highly purified furfural is exported, for which the company has a tie-up with Wilhelm Meinshausen, Germany. De-oiled cakes are exported to the UK.
The company faced rough weather in 1992 when a case was filed against it by the Commerce Ministry, on charges of attempting to export non-basmati rice without prior permission from the Agricultural & Processed Food Export Development Association (APEDA).
During 1995-96 the company was directed by Supreme Court of India to pay a Sum of Rs.41.31 Crores on account of difference between minimum export price fixed by Agricultural & Processed Food Products Export Development Authority (APEDA)
The Company was declared a Sick Industrial Company by BIFR on 2.4.98.
The BIFR bench has concluded that the company is not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting of its financial obligation and that it is just, equitable and in public interest that the company should be wound up.