ASHAPURA MINECHEM Share price

Ashapura Minechem Limited (AML) was originally established as a partnership concern in 1967 with a turnover of about Rs. 2 lacs. Within three decades it has grown up into a corporate having diversified interest in Bentonite mining processing export and port management with a turnover over Rs. 6997.27 lacs for 1997-98. The firm was converted into a Private Limited Company 1982. The Company became a deemed Public Limited Company in 1991 and later in 1992 was converted into a Public Limited Company. Its factories are situated at Bhuj-Kutch in village Madhapar and village Ler in the State of Gujarat.AML currently has 89 leases for mining in an area of 278.5779 hectares with probable deposits of 461.03 lacs MT in areas of Saran Wandh Hamala Roha in Kutch District (Gujarat). In addition to this the Company holds quarry leases for Bentonite mining for an area of 200 hectares in Gujarat (Source Government of Gujarat Industries Mines & Energy Dept. Order No. MCR/2186(29)14234/CHH Sachivalaya Gandhinagar dt. 25/1/90).The Promoters as per Rule 19(2)(b) of the Securities Contract (Regulations) Rules 1957 are making this offer to reduce their equity stake from 78.55% to 58.55% so as to ensure conformity with the said Rule. The Company has applied to SEBI Mumbai vide letter no. AML/SHARES/1088 dated 23/2/98 for permission to extend the time for dilution of promoters holding through Offer for Sale.AML is one of the pioneers in industrial mineral development in India and has developed various grades of Bentonite from different sources and quarries to meet international demand from sectors like oil drilling iron ore pelletization foundry and Civil Engineering.It is a Government recognised Export House and 95% of ifs total sales was exports in the year ended 31.03.1998 and 95.62 % of its total sales were exports for year ended 31/3/97. The Company has won awards for outstanding export performance from Chemicals & Allied Products Exports Promotion Council for 16 years during the period 1979-80 to 1996-97 and continuously from 1991-92 to 1996-97.AML''s promoters had started mining a highly complicated clay mineral called Bentonite almost three decades ago. The product was then new in India. The Company has developed semi-processed calcium bentonite which has application in refining of edible oil. Currently AML has become synonymous with Bentonite. The quality of the Company''s product is being accepted in countries as far as Venezuela Brazil Canada Italy U.K. Germany Japan and also traditional markets of Middle East Far East and South East Asia. The Company has attained its current status by adopting a policy of giving highest satisfaction to number of customers for various applications and making maximum use ofavailable mineral resources at its end. AML''s main exports now are of Bentonite and its blends. It also deals in other minerals like barytes china clay etc. As per CAPEXIL (Chemical and Allied Products Exports Promotion Council) report for the year 1996-97 96.24% of total bentonite exports from India was done by AML.The Company has a dedicated staff in the laboratory mining force and product experts supervisors maintenance marketing administration and finance Personnel.