VBC Industries Ltd Company Summary

VBC Industries Ltd Summary

Originally started in 1967 as a partnership firm, Vizag Bottling Company, to bottle and distribute aerated waters under a franchise agreement with Parle (Exports), Bombay, VBC Industries (VBCI) was into a private limited company in Sep.71. In Apr.86, it became a public limited company. To reflect the diversified activities, its name was changed to VBC Industries in May 87. In Nov.92, VBCI went public (premium : Rs 10) to part-finance the diversification into chemicals by establishing a plant to manufacture nitric acid (60% concentration) and thermally stabilised low-density ammonium nitrate (LDAN) prills of explosive grade for the first time in India. It has entered into a collaboration with Norst Hydro, Norway, for manufacturing LDAN. It has a technical collaboration with Uhde, Germany, for basic engineering of the ammonia nitrate plants. Commercial production started from Feb.95. VBCI exported 1400 tonnes of LDAN prills to Singapore, Burma, Srilanka and Cambodia. During the year 1996-97 the Company earned foreign exchange worth Rs 1.39 cr.The Companys proposal of a One Time Settlement (OTS) to pay off the Principal Loan Outstandings of Rs. 32.31 crores has been accepted by the financial institutions. The Company has entered into Business Purchase Agreement with M/s. Bharat Coca Cola Bottling South East Pvt Ltd. for transfer of its bottling business as an ongoing concern, for a cash consideration of Rs. 38.55 crores, which is sufficient to meet the OTS dues and the Bottling Division dues.During the last quarter of financial year 1999-2000, the company entered into a business purchase agreement with M/s Arlem Investment and Finance Limited, Baroda for sale of its Chemical Business and the same was sold for a gross consideration of Rs. 34 crores.Three hydel projects viz Samal,Jalaput and Balimela has been promoted by the company during the company and out of the above three Samal project(20MW) has got State Technical Committee approval as well as environment clearances are being obtained.The project is expected to be completed within 18 months.Jalaput Project(18MW) report has been submitted to the Orissa and Andhra government for clearances and Balimela(60MW) in Orissa is at preliminary stage.