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Poysha Industrial Company Ltd

BSE: 504887 | NSE: ISIN:
Market Cap: [Rs.Cr.] 1 Face Value: [Rs.] 10
Industry: Packaging

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Company Profile

POYSHA INDUSTRIAL CO LTD. OBJECTS & ACTIVITIES : Manufacture of a wide variety of containers ranging from simple slip-cover cans used for cosmetic and other dry products to friction top cans for paints, open top sanitary cans for fruits and vegetables, and other precision-made containers. Metal cans, mostly decorated and lithographed are manufactured by the Company in a variety of sizes and shapes to meet the needs of the different products to be packed. The Company also makes other light-gauge tin-plate and sheet metal products. BRIEF HISTORY : Prior to 2nd July, 1957, Poysha Industrial Company was carrying on the business of manufacturing tin cans and tin containers at Sewri, Bombay, under a licence granted by the Government of India. The Company also had an expansion licence and had imported automatic tin printing and can-making plant from West Germany. On 2nd July, 1957, the Company was incorporated and took over the business of "Poysha Industrial Company" together with the imported machinery. OVERALL OPERATIONS : Since June 1981, there was constant go-slow and intermittent strikes by the workmen at the Company's Ghaziabad unit resulting in very low and uneconomical level of production. As the situation deteriorated, the Company had to declare a lay-off from 13th December, 1981. The situation further worsened since then which compelled the Company to close down this unit from 14th April 1982. The workmen at the Cochin unit also resorted to go-slow and went on a strike in December 1981 which lasted for about 3 months. An amicable settlement was reached in March 1982. Production of metal containers and total sales during the year amounted to 1,157.18 lakh nos. and Rs. 22.32 crores respectively. There was only a modest increase in profits. In 1982-83, in spite of the closure of the Ghaziabad unit, sales turnover at Rs. 26.68 crores was higher by 19.5% over the previous year due to the steady growth in the production levels maintained by both Thane and Cochin units. Though sales increased, profits declined substantially owing to the financial burden by way of standing charges and closure compensation to employees in respect of the closure of Ghaziabad unit. In 1983-84, the turnover declined by 19% to Rs. 21.57 crores due to general sluggishness and non-availability of duty free raw material. However, the working results showed improvement. In 1984-85 (17 months), with the revival of demand from the major consuming industries, the Company achieved a higher turnover of Rs. 39.42 crores. Higher production levels were achieved both at Thane and Cochin plant and also as a result of resumption of operations at Ghaziabad and commissioning of a new unit at Madras, both during March 1985. Profits also showed a healthy growth. Outlook for the availability of raw material (tin-plate and tin-mill products) was reported to be good for the next three years and its cost was also expected to show a downward trend. Profitability was therefore expected to show an improvement. In view of the delay in the implementation of the expansion project, financial institutions agreed to the Company's request to reschedule the debt repayments so that the repayment of instalments would commence after the working of the new units was stabilised. During 1985-86, turnover at Rs. 34.12 crores showed an increase of 23% over the annualised figure of the previous year. Satisfactory working of the Ghaziabad and the Madras units contributed significantly to the increased turnover. Profitability, however declined owing to increased cost of labour and higher interest burden on account of heavy capital investments made for the expansion and modernisation programmes. During 1986-87, production remained almost at the previous year's level and turnover rose marginally to Rs. 36.83 crores. Despite this, the Company suffered losses due to a steep rise in the cost of imported tin plate by virtue of its scarcity in the international market and the adverse U.S. Dollar-Rupee parity. In 1988-89 (18 months), there was satisfactory improvement in the working results. Sales at Rs. 87.41 crores were higher by 58% over the previous year, when compared on an annualised basis. The Company exported OTS can under the Duty Exemption Scheme for a total value of Rs. 8.08 crores. During 1989-90 (13 months), sales and exports amounted to Rs. 78.60 crores and Rs. 12.18 crores respectively registering increases of 33% and 109% respectively on an annualised basis over the previous period. However, profitability was affected by the hike in import costs and prevailing competitive conditions. During 1990-91, turnover declined by 13.8% to Rs. 62.55 crores due to restricted availability of tin-plates. The Company exported OTS can under the Duty Exemption Scheme for a total value of Rs. 8.46 crores. Profitability was affected by high import duties. During 1991-92 (15 months), turnover further decreased to Rs. 33 crores on account of continued liquidity crunch which adversely affected the availability of material inputs. During the period, the Company entered into a conversion arrangement with The Tinplate Co. of India Ltd., for supply of tinplate and marketing of the finished products, utilising the Company's production facilities for the manufacture of containers. The Company exported OTS cans worth Rs. 1.71 crores under the Duty Exemption Scheme and metal containers, printed sheets and components to the tune of Rs. 1.30 crores. EXPANSION : In 1983-84, the Company drew an expansion plan of Rs. 435 lakhs for the projects at Cochin, Madras and Calcutta. A factory shed was taken on long lease basis for the Calcutta unit. The Madras unit was commissioned during March 1985. The Company also installed side-seam welding bodymakers at its Thane and Ghaziabad units to enable the supply of side-seam welded containers to major customers from these locations. The entire imported equipment was received and put to productive use except the equipment meant for the Calcutta Unit. The Calcutta unit commenced trial production in August 1986. JOINT VENTURE PROJECT : During 1983, the joint venture project, Containers India Ltd. (CIL), being established in Tirupati, Andhra Pradesh for manufacturing metal containers, showed good progress. Major items and equipments were received and the unit was expected to go into commercial production by the end of 1983. A total of Rs. 7.50 lakhs was invested by the Company against the total committed equity/preference capital participation of Rs. 8.25 lakhs. Containers India Ltd., commenced trial production during 1983-84. In October 1985, one of the promoters proposed to divest his investment from the equity capital of CIL. The consortium of financial institutions decided to transfer the management of CIL to Bharat Metal Box, Hyderabad. Despite protracted negotiations between members of consortium, Andhra Pradesh Industrial Development Corporation (APIDC) and Bharat Metal Box Ltd., regarding the take over, the consortium's decision could not be implemented. In January 1986, the Company was asked by the consortium to submit proposals for rehabilitation of CIL. Meanwhile, the operations of CIL remaining suspended for two years, its net worth was eroded and it came under the purview of Sick Industrial Companies (Sp. Provisions) Act 1985. COLLABORATION : In 1970-71, the Company entered into a collaboration with American Can Co. During 1982-83, the Company received approval from Government for the renewal of the technical assistance agreement. SUBSIDIARIES : The Company holds all the 5,000 Equity shares of Rs. 100 each of the subsidiary Colrige Ltd. The plant of this subsidiary remained closed since 1st August 1976. Negotiations were in progress to dispose of this company by way of outright sale of assets or shares. In 1982-83, the Company sold its investment in the share capital of Colrige Ltd., to Maul Eastern Ltd. In view of the disposal , Colrige Ltd., ceased to be a subsidiary of the Company. Kaira Can Co. Ltd., ceased to be a subsidiary of the Company with effect from 14th January 1978. RIGHTS DEBENTURES : During July 1978, the Company offered secured redeemable debentures of the nominal value of Rs. 50 lakhs by way of right debentures of Rs. 1000 each to the existing shareholders. The rate of interest on these debentures was increased from 11% to 12% with effect from 1st August 1981. PARTLY CONVERTIBLE DEBENTURES : During August 1989,the Company offered 2,20,000 - 14% secured redeemable partly convertible debentures of Rs. 100 each on Rights basis in proportion 1 debenture: 10 equity shares held. Additional 33,760 debentures were allotted to retain oversubscription. Simultaneously, the Company also issued 11,000 - 14% secured redeemable partly convertible debentures of Rs. 100 each to the employees (including Indian working directors)/workers of the Company on an equitable basis. None were taken up and unsubscribed portion was allowed to lapse. Rs. 50 of the face value of each debenture was to be automatically and compulsorily converted into 5 equity shares of Rs. 10 each on expiry of 6 months for the date of allotment of debentures. Remaining Rs. 50 of the face value of each debenture was to be redeemed at par at the end of 6th (Rs. 15) 7th (Rs. 15) and 8th (Rs. 20) year from the date of allotment of debentures. REDEMPTION OF PREFERENCE SHARES : The 35,000 - 9.5% preference shares were due for redemption on 3rd May, 1980/83. With the consent of Controller of Capital Issues, the Company increased the rate of dividend from 9.5% to 11% with effect from 1st January, 1981 and extended the date of redemption to 31st December, 1992/95. However, 39 shareholders holding 1,230 shares opted for redemption of their shares on 3rd May, 1983. The above said 1,230 preference shares were redeemed on 3rd May, 1983. Rate of dividend was further increased to 13.5% from 30th May, 1983. SICK INDUSTRIAL COMPANIES ACT, 1985 : During 1991-92 (15 months), the Company became a sick industrial company within the meaning of Clause (O) Sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. A reference was being made by the Company to the Board for Industrial and Financial Reconstruction (BIFR) in accordance with the provisions of Section 15 of the said Act. REVALUATION OF FIXED ASSETS : The land, buildings and plant and machinery at the Thane, Madras, Cochin and Ghaziabad units were revalued as on 31st August, 1986. The resultant surplus of Rs. 933.28 lakhs arising out of this was credited to capital reserves. GENERAL : As at 30th June, 1992, sums of Rs. 299.77 lakhs, Rs. 255.34 lakhs, Rs. 48.24 lakhs and Rs. 260.75 lakhs were outstanding against the loans from ICICI, IDBI, LIC and IFCI respectively.

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Key Information

Key Executives:

Harshad N Kapadia , Managing Director

Tukaram S Bhat , Director

Ajit Gulabchand , Director

Narendra N Kapadia , Director

Company Head Office / Quarters:

Tiecicon House,
DR E Mosses Road,
Phone : Maharashtra-4925705/5810/5812,4935711/4202 / Maharashtra-
Fax : Maharashtra-022-4950482 / Maharashtra-
E-mail :
Web :


PCS Industries Ltd
PCS House Plot No 4,B/h Photophone Bldg,Saki Naka Andheri(E),Mumbai - 400072

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