Kesar Enterprises Ltd Company Summary

Kesar Enterprises Ltd Summary

Kesar Enterprises Limited was earlier incorporated as The Kesar Sugar Works Limited in August, 1933. The Company name got changed to Kesar Enterprises Limited in February, 1999. The Company belongs to the Kilachand Devchand Group. The Company deal in production of Sugar, Spirit, Ethanol, Bagasse based Power located at Baheri, Uttar Pradesh. The Company is at present managed by Harsh R Kilachand, chairman-cum-managing director. In Sep.92, KEL came out with a rights issue (4:5) of 28.94 lac 13.5% FCDs of Rs 30 each, aggregating Rs 8.68 cr to part-finance the modernisation and expansion of the companys distillery (cost : Rs 10.40 cr) to produce extra neutral alcohol (ENA) and Indian-made foreign liquor (IMFL).The company manufactures various products such as sugar, industrial alcohol and country liquor. Apart from this, it also has large storage installations for handling liquid bulk cargo. KEL has two subsidiaries, Amber Distilleries and Kesar Marble & Granites, with which it had set up a 100% EOU for processing and polishing granite. From 11th July,2002 Kesar Marble & Granites ceased to be subsidiary of KEL.During 1999-2000, the company has entered into a Project Services Agreement with Mahindra Realty Infrastructure Developers Ltd (MRIDL), a wholly owned subsidiary of Mahindra & Mahindra Ltd for developing its land at Goregoan - Mumbai and construction for sale, residential and commercial tenements. It has also got approval from the authorities to start construction activities.To improve the quality and quantity of alcohol the company has increased the license capacity from 13,092 KL/year to 16365 KL/year and subsequently total production will be increased from the current financial year.In July 2006, the Company sold its entire investment of 1,40,000 equity shares of ADL for a total consideration of Rs. 120 Lacs, plus repayment of the interest free loan of Rs. 50 lacs given earlier by the Company to ADL. Hence, with effect from 25 July, 2006, ADL ceased to be a wholly owned Subsidiary of the Company.On 21. 1. 2008, Kesar Terminals & Infrastructure Ltd. (KTIL) was incorporated as a Wholly-Owned Subsidiary of the Company.The Honble High Court of Bombay had passed an Order on 12 March, 2010 sanctioning the Scheme of Arrangement by way of Demerger, for transfer of the undertaking, business, activities and operations pertaining to the Storage Division / Undertaking of the Company into the erstwhile Wholly-owned Subsidiary Company viz. Kesar Terminals & Infrastructure Ltd. [KTIL] as a going concern with effect from the Appointed Date i.e. 1 January, 2009. The Effective Date of the Scheme is 29 March, 2010.Erection of the boiler in the distillery at Baheri was completed in August 2010 and commissioned in September 2010. As per the Honble High Court sanctioned Scheme of Arrangement for Demerger, on allotment of 47,53,113 Equity Shares of Rs.10/- each fully paid-up aggregating to Rs.4,75,31,130/- to the shareholders of the Company by Kesar Terminals and Infrastructure Limited (KTIL) on 1 June, 2010.The post-allotment holding of the Company in KTIL reduced from 100% to 9.518% and therefore the Holding Subsidiary Relationship between the Company and KTIL has ceased with effect from 1 June, 2010.The 44 mw Bagasse based Cogeneration Power Plant at Baheri, U.P. was completed in July, 2012 and plant started commercial operations from 1 October, 2012. With effect from 1 July 2013, the Company merged its Agrotech Division into Seed Division.