Vegepro Foods and Feeds Ltd. Company History and Annual Growth Details

YEAR EVENTS
1987 - The Company was incorporated on 30th April, as a public Ltd
Company. The main object of the company is to manufacture
Soyabean Oil, Soyameal, edible Soyaflour & texturised vegetable
proteins. The company was promoted in the joint sector by the
Pradeshiya Industrial & Investment Corporation of Uttar Pradesh
Limited (PICUP) & Glindia Ltd. The name of Glindia, Ltd. was
subsequently changed to Glaxo India Ltd.

1988 - 110 shares were subscribed for the signatories of the Memorandum
of Association. 8579,890 shares were then issued at par of which
22,30,000 shares to PICUP and 20,60,000 shares to Glindia, Ltd.
were reserved and allotted on firm basis.

- Out of the remaining 42,89,890 shares, the following shares were
reserved for preferential allotment:

- (i) 6,10,000 shares to the shareholders of Glindia Ltd.;

- (ii) 4,29,000 shares to employees/workers of the Company and
those of promoter companies and

- (iii) 3,50,000 shares to farmers and agriculturists (all but
3,62,300 shares of the employees quota, were taken up).

- The balance 29,00,890 shares, along with 3,62,300 shares not
taken up by employees were offered to the public in January,
1989.

1989 - The Company's licence was braod based to process all kinds of
oil cakes and refining of other edible oils. The licensed
capacity of the extraction plant was increased from 75,000 tonnes
to 1,00,000 tonnes per annum. Licence for blending of oils and
manufacture of rice bran oil was also received during the year.

1990 - During the year, soya and mustard oil in retail packs were
launched in Northern India. An Expander-Extruder was installed
to improve the production efficiencies in the solvent extraction
plant.

1992 - Working resulted in a loss due to steep rise in the cost of
hexane, electricity and other inputs resulting in enhanced cost
of processing and sudden fall in the prices of edible oils in
January.

- Turnover registered a 25% decline due to poor utilisation in the
oil extraction plant and in the edible oil refinery on account of
non availability of oilseeds at economic levels and shortage of
working capital funds.

- The Company also embarked on increasing the mustard processing
capacity from 150 TPD and that of refinery from 75 TPD to 100
TPD. A new brand of mustard oil `Bandhan' was launched during
the year.

- The Company co-promoted by Glaxo and PICUP, had been suffering
losses ever since it commenced production. Glaxo decided to
invest its holding in the company. Based on the Memorandum of
Understanding between Warren Tea Ltd. and Glaxo entered into on
27th October, Warren Tea Ltd. purchased Glaxo's entire
shareholding of 20,60,000 shares in the company at a premium of
Rs. 2 per share.

- In view of the Corporate decisions taken by Warren Tea Ltd.
(WTL), the shareholdings of WTL in the company was taken over by
the Kitply Group of Industries.

- 20,60,000 shares allotted to Warren Tea Ltd. as rights (prem. Rs.
2 per share; prop. 1:1).

1993 - The lock-out for a period of 3 months during the peak mustard oil
season, the overall working could have been still better.

- The Company's flour and TSP along with procurement of raw
material from within a radius of 100 kms. of factory led to break
even in company's operations.

1994 - During February, the Company came under the provisions of the
Sick Industrial Companies (Sp. Provisions) Amendment Act 1993.

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