We were founded in 1986 as a partnership, under the name M/s Gujarat Industries, to manufacture Pigments by our Executive Chairman Mr Jayanti Patel, together with our Managing Directors, Mr Ashish Soparkar and Mr Natwarlal Patel, as well as two of our Executive Directors Mr Ramesh Patel and Mr Anand I Patel (collectively the "Founders").
On 2 January 1995, our Company, Meghmani Organics Limited, was incorporated as a joint stock company with limited liability pursuant to Part IX of the Indian Companies Act. Under Section 566 of the Indian Companies Act, "joint stock company" means a company having a permanent paid-up or nominal share capital of fixed amount divided into shares. Upon incorporation, our Company acquired the business and all existing assets and liabilities of the partnership M/s Gujarat Industries and the Founders became shareholders of our Company.
Our Company has received several awards for our outstanding export performance and excellent performance since the date of our incorporation. Please refer to the section titled "Awards" on pages 118 to 119 of this Prospectus for further details. A detailed description of our manufacturing plants and office is as follows:
In 1986, we commenced operations to manufacture Phthalocynine Green 7 more popularly known as Pigment Green 7 (PG-7) at our first manufacturing plant situated at the GIDC Industrial Estate, Vatva, which is approximately 14 km from Ahmedabad City. This industrial estate is developed by the state government's nodal agency, GIDC.
The Vatva Plant was originally set up for the manufacture of Pigment Green 7. Our present production capacity of 1200 tpa at the Vatva Plant is the result of the construction of additional facilities over the years, which increased the manufacturing capacity of Pigment Green 7 from 240 tpa in 1986 to its present production capacity.
As at 30 November 2003, we have invested Rs 128.49 million in plant and machinery and building at the Vatva Plant. Our manufacturing facilities at the Vatva Plant is ISO 9001-2000 certified.
In 1995, the Founders decided to diversify our business through the manufacture of Agrochemicals. The plant for the manufacture of Agrochemicals is located in Chharodi Village, which is approximately 40 km from Ahmedabad City. The cost of commissioning the Chharodi Plant was approximately Rs 300.7 million.
At the plant, we manufacture Technical Grade Pesticides which include synthetic pyrethroids such as Cypermethrin, Permethrin and Alpha Cypermethrin and organic phosphorous compounds such as Acephate as well as new Technical Grade Pesticides such as Imidacloprid and Triazophos, Formulations and Pesticides Intermediates such as MPB and CMAC. As at 30 November 2003, we have invested Rs 440.7 million in plant and machinery and building at the Chharodi Plant. Our manufacturing facilities at the Chharodi Plant is ISO 9001-2000 certified.
In 1996, our Company proceeded to expand our Pigments business and to move upstream into the manufacture of CPC Blue, a raw material used in the manufacture of green Pigments and the manufacture of the blue Pigments namely, Alpha Blue and Beta Blue.
We acquired two plots of GIDC land at the GIDC Industrial Estate, Panoli, to set up the manufacturing facilities. The plant is located on the western side of India near Ankleshwar, which is approximately 200 km south from Ahmedabad and 250 km north from Bombay. This area is one of India's chemical manufacturing centres and is accessible by railway and roads, and has adequate infrastructure facilities for the industries and is in close proximity to sources of raw materials and other inputs.
The cost of commissioning the Panoli Plant was approximately Rs 437.0 million. The project was partially funded by way of an equity injection by JF Electra (Mauritius) Limited (now known as Electra Partners Mauritius Limited), a Mauritius based private equity investment company which injected Rs 205.0 million and Pisces Re Ltd, a Mauritius based company which injected Rs 175.0 million. The construction of the plant was completed in the second half of 1997 and we commenced manufacturing CPC Blue, Alpha Blue and Beta Blue in February 1998. At present, the Panoli Plant has a production capacity of 7200 tpa, 600 tpa and 3,000 tpa for CPC Blue, Alpha Blue and Beta Blue respectively. Our manufacturing facilities at the Panoli Plant is ISO 9001-2000 certified.
As at 30 November 2003, we have invested Rs 550.8 million in plant and machinery and building at the Panoli Plant. In February 2004, we acquired an adjoining plot of land of 34,000 sq m for Rs 12.0 million.
As our Company exports a majority of products manufactured at the Panoli Plant, we converted this division into an Export Oriented Unit (EOU) in FY2003, to enjoy certain tax and duty benefits.
In FY2003, we acquired another plant in Ankleshwar at a purchase price of Rs 31.5 million. The Ankleshwar Plant commenced production on 1 August 2003 to manufacture Chlorpyrifos, a class of Agrochemical products, and has a current installed production capacity of 480 tpa.
As at 30 November 2003, we have invested a further Rs 53.4 million in plant and machinery and building at the Ankleshwar Plant. Mumbai Office
In 1996, we purchased office premises in Mumbai, which is presently headed by Mr Ashvin Raythatha, our Executive Director, who oversees our imports and exports activities.