History of Gujarat State Fertilizer and Chemicals Ltd.

1962

- The Comp. was Incorporated on 15th February, in Gujarat. The Company manufacture chemical fertilisers, petrochemicals & other allied products such as urea, ammonium sulphate, diammonium phosphate, ammonia, sulphuric acid, caprolactam, argon gas, etc., & nylon-chips and melamine.

- 1,47,000 Pref. & 4,41,000 No. of equity shares taken up by Gujarat Government. 7,663 Pref. & 25,975 No. of equity shares taken up by directors, etc. 25,737 Pref. & 77,625 No. of equity shares issued to the employees of Company, farmers, Co-operative sector, etc. 1,19,600 Pref. & 3,55,400 No. of equity shares offered to the public.

1967

- The first phase of plants consisting of ammonia, sulphuric acid, phosphoric acid, urea, ammonium sulphate & diammonium phosphate units were commissioned.

1972

- The Comp. set up its own development & research department.

1974

- The Caprolactam facility plant was commissioned on 25th March.

1979

- On 1st June, the Comp. completed & put into operation a debottlenecking programme with a view to increase the production of phosphoric acid.

1981

- During December, the Comp. commissioned another sulphuric acid plant for manufacture of 1,32,000 TPA of sulphuric acid. A contract was signed with Simon Carves India, Ltd., for establishing sulphuric acid plant in 1978.

- During the 3rd week of December, the demonstration plant for the manufacture of 300 TPA of Styrene Acrylonitrile [SANs] was commissioned.

1982

- During November, the Comp. commissioned a 5,000 tonnes per annum of melamine & fluorine recovery plant.

- During July, the Comp. commissioned a factory for conversion of methane into oxosyngas for Indu Nissan Oxo Chemical Industries Ltd., who had set up a plant for oxo-alcohols near the Company complex.

- The Comp. undertook to set up its second DAP complex with a capacity of 4,50,000 tonnes of phosphorous pentoxide [P2O5s] per annum on the Saurashtra coast.

- The Comp. & Gujarat Maritime Board jointly formed a technical committee in order to speedily set up a jetty with infrastructural facilities for development of Sikka port for handling imports for the DAP complex. The main process plant was commissioned in December 1986.

1983

- Polymers Corporation of Gujarat Ltd., was amalgamated with the Company with effect from 1st January as per approval of Gujarat High Court dated 16th January, 1985.

- In terms of Scheme of Amalgamation one equity share of Rs 100 each of Comp. was issued in exchange of 85 equity shares of Rs 10 each of Polymers Corporation of Gujarat Ltd., & 35,000 -11% cumulative redeemable preference shares of Rs 100 each of Company were issued in exchange of 35,000-11% cumulative redeemable preference shares of Rs 100 each of Polymers Corporation of Gujarat Ltd., with no right of arrears of dividend for period prior to 1st January, 1983.

- The Comp. was required to issue & allot without payment in cash 58,824 No. of equity shares of Rs 100 each & 35,000-11% cumulative redeemable preference shares of Rs 100 each to the members of Polymers Corporation of Gujarat Ltd., upon its merger with the Company. This Scheme of Amalgamation was under Section 72-A of Income-Tax Act, 1961.

- In addition, 14,706 bonus equity shares of Rs 100 each of Company were also to be allotted on the 58,824 No. of Equity shares of the Company to be allotted to members of Polymers Corporation of Gujarat Ltd., in respect of Company bonus issue of 1984 in proportion 1:4.

1985

- 4 polymer blends & alloys of Nylon-6 & SAN were developed. During the year, industrial licence for methacrylic acid [MAAs] was received.

1986

- Equity shares subdivided in June. 260 No. of equity shares of Rs 10 each allotted to non-resident & 30 bonus equity shares of Rs 10 each were also allotted. 30 No. of equity shares of Rs 10 each forfeited.

1987

- The Company multipurpose fertiliser pilot plant to be set up in collaboration with International Fertilizer Development Centre [IFCDs], USA, received Government approval in the year. The pilot plant for xylitol from bagasse was commissioned. The Comp. in collaboration with ATIRA, Ahmedabad developed an acrylic based synthetic thickener.

- The Comp. issued 14% non-convertible debentures worth Rs 45 crores to UTI, LIC, BOI, Army Group Insurance Fund, SBI, Indian Bank and Central Bank of India on private placement basis.

- 6,218,337 bonus equity shares issued in prop. 3:10. 4,430 No. of equity shares allotted to non-resident shareholders.

1988

- [15 monthss], agreements with foreign collaborators & Indian engineering construction companies were completed for establishment of the Caprolactam facility plant.

- The R&D Department was in the process of setting up a multipurpose fertiliser pilot plants for manufacture of solid & fluid fertilisers.

- Gujarat Industries Power Co., Ltd., was set up through the joint efforts of Gujarat State Fertiliser Co. Ltd., [GSFCs], Gujarat Narmada Valley Fertilisers Co. limited [GNFCs], Gujarat Alkalies & Chemicals Ltd. [GACLs], Petrofils, Heavy Water project collaboration with GEB and Government of Gujarat, for establishing a joint captive power plant IX 120 MV capacity.

- [15 monthss], the Comp. proposed to undertake a project in collaboration with a leading US biotechnology Comp. under PACT scheme and ICICI for development of biopesticides for control of pests in groundnut, tobacco, etc.

- During December 1988-January 1989, the Comp. offered 166,66,666-14% secured redeemable partly convertible debentures of Rs 90 each on rights basis in the proportion 8 debentures: 13 equity shares held [all were taken ups].

- The Comp. also issued 8,33,333-14% debentures to employees/working directors of Comp. on an equitable basis [only 7,95,735 debentures taken ups]. The unsubscribed portion of 37,598 debentures was allowed to lapse.

- Rs 60 of face value of each debenture was converted into one equity shares of Rs 10 each at a premium of Rs 50 per share [As per this conversion, 174,62,401 No. of Equity shares were allotted on 11.8.1989s].

- Rs 30 of face value being the non-convertible portion of each debenture was to be redeemed in 3 equal annual instalments on the expiry of 7th, 8th & 9th year from the date of allotment of debentures.

1989

- The DAP production at Sikka was hampered due to non-availability of imported/canalised raw materials like phosphoric acid & ammonia. As a result, the Sikka plant remained closed for a period of 193 days.

- Requisite permissions were received to import 1,500 tonnes of melamine. It was proposed to increase the melamine capacity from the present 5,000 TPA to 15,000 TPA & the project was under implementation. Necessary technical know-how the licence for the expansion project was proposed to be obtained from Chemic Linz.

- The Comp. decided to set up one more sulphuric acid plant with a capacity of 1000 TPD at a cost of about Rs 55 crores. A turnkey contract was awarded to Dharamsi Morarjee Chemicals Co., limited Mumbai, who have the tie up in the M/s. Tim J. Browder and Co. USA.

1990

- The Comp. proposed to set up a 1350 MTPD ammonia plant at Fertilizernagar. Linde AG West Germany were selected as the contractor for the project.

- The Comp. set up a project for production of argon gas required for industrial purposes & also for saving of naphtha & gas consumption in the manufacture of ammonia.

- Another plant was set up for recovery of methane synthesis gas and argon gas in 1980. - Effective from 1st April, Gujarat Nylons limited [GNLs] a subsidiary was amalgamated with the Company. The shareholders of GNL were to be allotted 1 equity share of Rs 10 each in GSFC for every 8 equity shares held in GNL. Accordingly 18,58,125 No. of equity shares were to be allotted to the shareholders of erstwhile GNL.

- 1,33,22,558 Bonus Equity share issued in prop. 3:10.

1991

- A three bed modified design contact furnace with improved material of construction was installed in the melamine plant.

- At the instance of Gujarat Maritime Board [GMBs], the Comp. decided to take over the ownership of Sikka Jetty from GMB right from the day of start up of construction of jetty.

- 525 No. of equity shares, representing 4,200 partly paid equity shares of GNL were forfeited for non-payment of allotment money & the balance 18,57,600 No. of equity shares were allotted to the shareholders of erstwhile GNL. The shareholders of GNL were also allotted 5,57,280 bonus shares on receipt of fresh consent from the Controller of Capital Issues.

- 27,414,880 No. of equity shares allotted pursuant a scheme of amalgamation.

1992

- The Comp. offered during October/November, 64,28,571 partly convertible debentures of Rs 350 each aggregating to Rs 225 crores. Out of total issue, 61,22,449 debentures were offered to the equity sharesholders 61,15,291 debentures taken up 3779 debentures of the Company on rights basis in the ratio of 1 debenture for 10 equity share held & the balance 3,06,122 debentures were offered to the employees of the Comp. only 2,54,160 debentures allotted.

- A portion of Rs 200 [Part-Bs] of each debenture compulsorily converted into 1 equity share of Comp. at premium of Rs 190 per share within 6 months from the date of allotment of debentures. Accordingly 63,69,451 shares allotted. The non-convertible portion of Rs 150 [Part-As] would be redeemed in three equal instlaments of Rs 50 each on the expiry of 7th, 8th & 9th years from the date of allotment of debentures.

- The Comp. proposed to issue Euro Convertible Bonds of order of US $100 million.

- The 35,000-11% cumulative preference shares were due for redemption in 19th January.

- 63,77,124 No. of equity shares, 832 shares and 197 shares allotted on 1.6.1993 and 17.6.1993.

1995

- Additional equipment facilities were installed & necessary modifications were carried out in Gas Turbine to use liquid fuels like Naphtha/HSD or mixture of Natural gas & Naphtha to overcome the difficulties in getting continuous supply for required quantity of Natural gas.

- With a view to take care of investments in new schemes & small projects, the Comp. promoted a new Comp. 'GSFC Investment and Leasing Co., Ltd.' [GILCs].

- The issue capital or GILC comprising 95,000 No. of equity shares of Rs 10 each & 50,000 preference shares of Rs 100 each are held by the Company.

- In order to part finance the 1350 MTPD New Ammonia Project at Fertilizernagar, the Comp. made a rights issue of 13301,290 No. of equity shares of Rs 10 each for cash at a prem. of Rs 90 per share in the ratio of 1 share for every 5 shares held.

- The Comp. proposed to issue Equity shares/Convertible Bonds upto US $100 million. The Comp. made arrangements with some of financial institutions for issue of secured Redeemable Non-Convertible Debentures aggregating Rs 80 crores on private placement basis.

1996

- The Comp. signed two separate contracts with M/s. ENCO/Poleservice for the supply of licence, know-how, basic engineering & for supply of imported/proprietary items.

- Effective from 1st October the name of Comp. was changed from Gujarat State Fertilizers Co. limited to Gujarat State Fertilizers & Chemicals Ltd.

- 132,90,847 right shares [prem. Rs 90 per shares] issued in prop. 1:5.

1997

- All DCS systems, Electrical sub-station, Air separation unit and Argon recovery units, TG set, Air and Nitrogen compressors were commissioned.

1998

- With a view to enhancing the production of Cyclohexanone, the Company undertook to set up a debottlenecking project.

- The GSFC acquisition would be part of its figure prospects of modernising the plant & setting up a phosphoric acid plant.

- Gujarat government has issued a letter of intent [LOIs] for land to petronet for setting up the LNG terminal at Dahej.

- GSFC & Ecomat would explore the possibility of R&D collaboration for development of building materials from industrial wastes such as chalk, fly-ash & agro waste to cater to the Indian market.

- Gujarat State Fertilisers & Chemicals signed a memorandum of understanding with International Inc. Florida, USA, for development of phosphochalk-based wood & other building materials through innovative technologies.

- 33,00,000-17.5% Pref. shares issued to be redeemed after 3 years i.e. from 9.2.2002.

1999

- Gujarat State Fertilizers & Chemicals [GSFCs], a State Government undertaking, has signed a memorandum of understanding with the U.S.-based Planetary Design Corporation [PDCs] to set up a coastal agro industrial project in the State.

- The Reserve Bank of India [RBIs] has withdrawn the in principle clearance granted to the Gujarat State Fertiliser Comp. Limited [GSFCs] to set up a private bank.

- Fertiliser major Gujarat State Fertilisers & Chemicals Ltd [GSFCs] has taken an in-principle decision to sign a joint venture [JVs] agreement with engineering & infrastructure major Larsen & Toubro limited [L&Ts] for construction of buildings at its Rs 200 crore Infocity project.

- The Comp. has entered the agro service sector with the launch of various plant breeding, biofertilisers & tissue culture products.

- The Comp. has signed the tripartite agreement with CDSL & MCS limited on November 12.

2000

- Mr Sudhir Mankad was appointed as Direct of Comp. in place of the casual vacancy caused by resignation of Mr K. V. Bhanujan with effect from 20th October.

2001

- ICRA has downgraded the long-term rating assigned to the non-convertible debenture [NCDs] & bond programme of Comp. from `LAA', indicating high safety, to `LA+', indicating adequate safety.

2002

-Appoints Dr Manjula Subramaniam as the Rotational Director of company.

-Changes in the directorship: Mr Vipin Malik ceased to be the Director, Mr Narasimha Raghunath Krishnan apointed as Nominee Director of UTI, Mr Sudhir Mankad appointed as Additional Director, Mr Subashchandra Ramrao Vengsarkar appointed as Additional Director.

-Considers two option to salvage the loss making fertilizer: 1. Weighs the option of merger of Gujarat Narmadavalley Fertilizers with GSFC 2. Disinvestment of GSFC.

-Rationalises the plant load of Urea-I & Melamine-I and II plants.

-Seeks relief from the Union Ministry of Chemicals & Fertilizers for capital expenditure incurred by Comp. on its 1350 MTPD ammonia plant.

-Completes DAP Expansion project Train 'C' of capacity of 3,96,000 tonnes per annum at Sikka Unit.

-Government of Gujarat declares GSFC as Relief Undertaking.

-Changes in the BOD: Shri Arvind Dhirubhai Desai & Dr Kesichainula Kameswara Rao, ceased to be the Director of Comp. & Shri Radhey Shyam Agarwal appointed as the Nominee Director of IDBI.

2003

-Dr Kesichainula Kameswara Rao is ceased to be the Director by resignation.

-Appoints Mr Ashok Narayan as the Chairman of company.

-Appoints Mr C K Koshi as the Director on the Board of company.

-Files a special suit in the civil court of justice, seeking interim injuction on any sale or transfer of its mortgaged shares.

-Members approve for delisting of equity shares of Comp. from Ahmedabad, Calcutta, Delhi & Madras Stock Exchanges.

- Equity shares of Gujarat State Fertilizers and Chemicals Ltd voluntary delisted from the Madras Stock Exchange w.e.f. March 12, 2004, Delhi Stock Exchange w.e.f. March 31, 2004 & Ahmedabad Stock Exchange w.e.f. March 31, 2004

-GSFC wins award from FAI