HIKAL Share price

Hikal Chemical Industries Limited (HCIL) jointly promotedby Surajmukhi Investment and Finance Limited a whollyowned subsidiary of Kalyani Steels Limited and the Hiremathfamily was incorporated on July 8 1988 with theobjective of carrying on the business of manufacture andmarketing of chemicals intermediates dyespharmaceuticals and pesticides.The period from 1988 to 1991 was utilised in setting up themanufacturing facilities at Mahad over land admeasuring27004 square metres. This activity was completed inJanuary 1991 and the Company commenced the production of PCand MCA in the same year. The Company recorded domesticsales of Rs.29.01 lakhs in the very first year of operationand the response of the market to their products wasencouraging.On February 28 1990 HCIL became a deemed public companyunder the provisions of Section 43 A of the Companies Act1956 and a fresh Certificate of Incorporation was obtainedfrom the Registrar of Companies. The Company subsequentlybecame full fledged Public Limited Company by passing aspecial resolution in the E.G.M. held on 7.7.94. Revisedcertificate of incorporation has been obtained on16.9.94.1991-92 was the first full year of operations of theCompany which also saw the introduction of a new product34 Di chloro nitrobenzene. The Company''s earliermarketing activities in the export markets bore fruit withexports during the year touching Rs.56.70 lakhscontributing eight per cent of the total sales of theCompany.HCIL consolidated its operations in 1992-93. Exportearnings also soared to Rs. 304.87 lakhs. In the midst ofits efforts in achieving higher production capacities theCompany was also exploring the feasibility of adding on toits product range. The acceptance of the Company''sproducts is demonstrated by their clintle which includesHoechst Montari Sandoz Sumitomo IPCA rata Pharma AtulProducts Bayer etc.In December 1993 Sumitomo Corporation Japan one of theworld''s largest trading houses with assets of U.S. $46402 million and Net Income of U.S. $ 176 millionacquired an equity stake in the Company. Sumitomo hasinterests in commodities industrial and consumer goods.Apart from these Sumitomo is also an active investor in adiverse range of businesses that are in conjunction withtheir existing operations and in markets which havetremendous growth potential.Sumitomo acquired 57850 equity shares of Rs.10/- each forcash at a premium of Rs.44/- per share thus signifyingtheir faith in the future of the Company. The necessaryapprovals for this issue of equity to Sumitomo has beenobtained from the Reserve Bank of India vide their letterNo.EC/BY/FITT/568/ S-67/93-94 dated December 22 1993.The object of this investment was to source intermediateson "Toll Manufacturing Basis" to be marketed throughSumitomo''s worldwide marketing network. Sumitomo iscurrently carrying on discussions with the Company toidentify the products which could be manufactured by Hikal.It may be mentioned that the Company has a long standingrelationship with Sumitomo which has marketed Hikalproducts earlier. It is expected that the formalisation ofthe relationship between Hikal and Sumitomo would greatlybenefit the Company.The Company has issued 150000 shares of Rs.10/- each toHiremath Chemicals Limited in lieu of technical know-howand engineering in the year 1991. The Memorandum ofUnderstanding (MOU) dated January 3 1991 valid for aperiod of 7 years between Hikal Chemical Industries Ltd.and Hiremath Chemicals Ltd. covers transfer of technologyand technical assistance for Meta chloro aniline 34 DCNBand paracumidine.The year 1993-94 saw a quantum jump in domestic sales fromRs.697.90 lakhs in 1992-93 to Rs.998.36 lakhs in 1993-94an increase of 43%. Overall the sales increased fromRs.1002.77 lakhs in 1992-93 to Rs.1078.21 lakhs. To give afurther boost to its export performance the Companyappointed a representative in England to carry out themarketing activities in Europe.On the financial front the total income increased fromRs.29.01 lakhs in 1991 to Rs.1087.63 lakhs in 1994. TheReserves position so strengthened from Rs.21.99 lakhsin 1992 to Rs.174.42 lakhs in 1994. In view of thehealthy reserves position the Board of Directors at theirMeeting held on June 1 1994 recommended the issue ofBonus Shares in the ratio of one share for every two sharesheld.It may be mentioned that the Company has declared dividendconsistently from 1991-92 onwards which was the first fullyear of operations of the Company.