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History of Hilton Rubbers Ltd.

YEAR EVENTS 1973 - The Comp. was Incorporated as a private limited Comp. on 11th July under the name & style of Hilton Rubbers Pvt. Ltd. Subsequently on 15th January 1982 it was converted into a public limited company. The Comp. was originally formed as a Partnership firm in 1971 & Commenced Promotion on 22nd January 1971. It was promoted by Shri D. S. Khanna.

- The main objective of Comp. is to manufacturer rubber goods, conveyor, transmission & V-Belts motor and bicycle tyres & tubes, rubber mattings and fittings gloves and mattresses, mackintosh, resin and hose pipes.

1976 - Particulars of allotment not available.

1980 - Shares subdivided on 30th March 1982. 2,00,000 bonus shares allotted in prop. 1:1.

1981 - The Comp. increased the production capacity of conveyor/transmission belts from 1,250 tonnes to 2,125 tonnes per annum.

1982 - In August. 4,80,000 [including 80,000 offered for sales] shares issued [prem. Rs. 2 per shares]. Of these 40,000 shares reserved for allotment to the employees/business associates of the Company.

The balance 4,40,000 shares allotted to the public.

1983 - The Comp. undertook to set up a new unit to manufacture 1.65 million pieces of raw edge `V' belts in technical collaboration with Arntzoptibelt-KG of West Germany.

1984 - During March 1985, 1,92,000 rights shares issued at par in prop. 6:25 & 3,000 shares issued at par to the employees.

1985 - The Comp. received a Letter of Intent to enhance the capacity for manufacture of V-Belts from 18 lakh pieces to 21 lakh pieces per annum.

- Simultaneously with the rights issue of equity shares in March, the Comp. offered 1,00,000 - 15% secured non-convertible debentures of Rs. 100 each on rights basis to the existing shareholders of Comp. in the proportion of 1 debenture for every 8 equity shares held. These are redeemable in one lot on expiry of 7 years from 21st June.

- The Comp. revalued its land, buildings & plant & machinery as on 30th June, & the net surplus arising out of this was transferred to capital reserves.

1986 - The margins suffered a setback due to reasons like strike by workmen at unit No 1. for about 2 months & withdrawal of concessional duty on nylon fabric, from November.

- Unit No. 4 was set up at Badhkhalsa, Sonepat, for manufacture of KEVLAR reinforced conveyor belts upto 2,400 mm width, in collaboration with Trelleborg Aktiebolog, Sweden.

- During April, the Comp. issued 5,05,000 No. of equity shares of Rs. 10 each at par linked to 1,00,000 - 15% secured redeemable non-convertible debentures of Rs. 100 each.

- Out of this issue, 4,75,000 No. of equity shares linked with 95,000 debentures, were offered to the existing equity shareholders of Company, in the ratio of 15 equity shares and 3 debentures for existing equity shareholding between 25 to 34 & thereafter for every 10 existing equity shares or part thereof 5 new equity shares & 1 debenture. [all were taken ups].

- The balance of 30,000 No. of equity shares linked with 5,000 debentures were to be offered to the employees/workers of the Comp. on an equitable basis in the proportion of 1 debenture & 6 equity shares provided that not more than 10 debentures and 60 equity shares would be given per employee/worker. [all were taken ups].

- The non-convertible debentures of Rs. 100 each are redeemable in one lot on expiry of seven years from 21st June.

1987 - 5,00,000 bonus shares issued in prop. 1:3 on 20th November.

1988 - 4,00,000 No. of equity shares issued at par.

1989 - During July-August, the Comp. offered 1,20,000-12.5% secured fully convertible debentures of Rs. 150 each on Right basis in proportion 1 debenture: 20 equity shares held. [all were taken ups]. Additional 18,000 debentures were allotted to retain oversubscription.

- Simultaneously another 6,000-12.5% fully convertible debentures were issued to the employees [including Indian working directorss]/workers of Comp. on an equitable basis [only 1,441 debs taken ups]. Unsubscribed portion of 4,559 debentures was allowed to lapse.

- Rs. 60 [Part As] of face value of each debenture was converted into 4 equity shares of Rs. 10 each at a premium of Rs. 5 per share on the expiry of 6 months from the date of allotment of debentures. Accordingly 5,57,764 No. of equity shares were allotted on 28th March 1990.

- Rs. 45 [Part Bs] of face value of each debenture was to be converted into 2 equity shares at a premium of Rs. 12.50 per share at the end of 18 months from the date of allotment of debentures. Accordingly 2,78,882 No. of equity shares were allotted on 28th March 1991.

- The remaining Rs. 45 [Part Cs] of face value of each debenture was converted into 2 equity shares at a premium of Rs. 12.50 per share at the end of 24 months from the date of allotment of debentures. Accordingly 2,78,882 No. of equity shares were allotted on 28th September 1991.

- Subject to the approval of Central Government, the Company proposed to change its name from Hilton Rubbers limited to Hilton Trellex Ltd.

1990 - The overall working improved despite political instability, cancellation of some major orders from Middle East & hike in the price of petrochemical based raw materials.

1991 - The Comp. proposed to restructure the Power Transmission division in technical & Financial collaboration with A/s Routunds Fabriker of Denmark to form a new joint venture Company. For this purpose, the Comp. proposed to sell the Power Transmission division to the Joint Venture in which the Company will hold 50% equity & the balance 50% will be held by A/s Roulunds Fabricker & IFU.

- Some of salient features of agreement are 1s] Hilton Rubbers will receive a Royalty for use of its Brand name; 2s] The joint venture will pay a net Royalty of 1.8% to Roulunds; 3s] Roulunds have also committed to buy back V Belts worth Rs. 300 lakhs per year for West European markets. Operations were expected to commence on 1st April, 1993.

- The Comp. undertook to buy-back the debentures at par value plus accrued interest, if any, subject to certain limitations and conditions. The Comp. may keep alive any such debentures bought back & reissue them at its discretion.

1993 - Power transmission division was Spun off into a new company called Hilton Roulunds Ltd.

- 1,64,500 No. of equity shares of Rs. 10 each were issued at a premium of Rs. 25 per share to foreign collaborators Trellex AB, Sweden to make their shareholding equivalent to 20% of total paid-up capital of Company.

- Another 62,472 shares were issued at a premium of Rs. 25 per share to M/s. Kay Cee Engineers against purchase of assets.