Digjam Ltd Merged Company Summary

Digjam Ltd Merged Summary

Birla VXL (BVL), controlled by the S K Birla group, was incorporated in Mar.48. It has diversified into textiles, solvent extraction, electricity meters, protection relays, defence stores and heavy chemicals. All its plants are in Gujarat and Punjab. The Japanese giant, Mitsubishi Electric Corp., holds a 2% stake. In 1992, BVL drew up major plans for expansion and diversification. Siddharth Sugar Products was formed to manufacture soya products in collaboration with Central Soya, US, which has a 40% stake in the new venture. VXL holds 60% of the total capital of Rs 45 mln ($ 1.4 mln).It signed an agreement with the well-known Swiss company, Landis, and Gyr Energy Management Corporation and formed VXL Landis & Gyr, to manufacture superior ranges of electricity meters and test benches. The know-how for electronic test instruments is being supplied by Siemens. Universal Electrics, Universal Engineering and Sidhart Oils earlier units of Birla VXL were subsequently transferred to the companys subsidiaries viz VXL Engineers (earlier known as Unitron), VXL Landis & Gyr and Sidharth Soya Products respectively. VXL Landis & Gyr Ltd, ceased to be a subsidiary with the sale of BVXLs 34% holding to the Swiss company. OCM India, Trinity Textiles, VXL Investments, Birla Salt & Chemicals are other subsidiaries of BVXL. Oriental Carpet Manufacturers (OCM), Saurashtra Cement and Shree Digvijay Woollen Mills (Digjam) are the other companies merged under the VXL banner. During 1996-97, the company expanded the spindle capacity at Digjam and OCM units by 12232 spindles each. BVXL has also entered into a license agreement with Haggar Clothing Co.,USA entitling it to market the readymade trousers in India under the Haggar technology and brand. Both the textile units have received ISO certification. It is currently installing a thermal power station at the Saurashtra Chemicals unit which is expected to be commissioned in the second half of 1998. The management has declared a lockout at this plant from 24th May 1997 following labour disputes.The company has entered into a strategic alliance with Dormeuil of France to form Dormeuil-Birla VXL, with 49% holding, which will provide guidance on new designs and fabric quality and also help in marketing and export of the fabrics manufactured under the Dormeuil licence. It also formulating a new scheme to manufacture spun silk yarn, for export and internal consumption, in financial and technical collaboration with Masuzawa of Japan. The project which is expected to cost Rs.18 crs will be spun off as a subsidiary.During 1998-99, VXL Investments has ceased to be subsidiary by the virtue of its amalgamation with Janardhan Trading Company Ltd.Saurashtra Chemicals Ltd ceased to be a subsidiary of the company in the year 1999-2000, after allotment of shares in accordance with the scheme of arrangement implemented as per orders of the High Court of Gujarat.The company has divested its entire stake of 75.32% in Sidharth Soya Products Limited(subsidiary company) in favour of Noble Grain India Private Limited.Consequent of this divestment,Sidharth Soya Products Limited has ceased to be subsidiary of the company with effect from 14.10.2004.