History of Hemadri Cements Ltd.

YEAR EVENTS 1981 - The Comp. was incorporated on 20th August at Hyderabad. The Comp. was promoted by S.N. Kilaru, K.V.S. Varma, Mohan Rao, Rajeshwara Rao & their associates along with Andhra Pradesh Industrial Development Corporation Limited [APIDCs]. The main objects of Comp. is to manufacture Cement.

1984 - 8,00,000 shares taken up by promoters, directors, etc. [including 22,544 shares to NRIs on repatriation basiss] & 4,20,000 shares allotted to APIDC.

1985 - 15,80,000 shares issued at par out of which the following shares were offered on a preferential basis: 6,32,000 shares to NRIs with repatriation rights, 79,000 shares to employees, etc., of the Comp. & 31,600 shares to business associates. The balance 8,37,400 shares were offered to the public in February.

1986 - To improve production, a secondary firing system in the pre-heater was installed. Some diesel generating sets were also installed to meet the power shortage.

1987 - A letter of intent was received for expanding the capacity of the cement plant from 300 tonnes per day to 600 tonnes per day.

1990 - IDBI approved expansion of capacity only from 300 tonnes per day to 500 tonnes per day of clinker.

- Two diesel generating sets of 1000 KVA were installed & commissioned in June 1992 with the financial assistance from IDBI.

- The Comp. proposed to expand the cement grinding capacity to 600 tonnes per day by installing one more cement mill. A new cement mill was installed & commissioned in June 1993, with financial assistance from IDBI. Plans were also in hand for the generation of power for captive use by setting up 3 MW Thermal Power Station based on agro waste at the factory instead of mini-hydro power project as envisaged earlier.

1992 - 9,80,000 No. of Equity shares allotted on private placement basis.

1994 - 18,90,000 No. of Equity shares issued on rights basis in prop. 1:2.

1996 - The Comp. had entered into an agreement with The Associated Cements Companies limited [ACCs] to sell company cement as consignment agent in the state of Andhra Pradesh, Karnataka, Tamil Nadu & Kerala.