CHEVIOT COMPANY Share price

The Company was incorporated on December 27 1897 in the name ofDelta Jute Mills Company Ltd (DJML) belonging to the house ofAndrew Yule Calcutta. From the close of business on May 311967 Budge Budge Jute Mills Company Limited and Cheviot JuteMills Company Limited were amalgamated with DJML in accordancewith the Calcutta High Court order dated June 14 1967.Subsequently the name of DJML was changed to Budge BudgeAmalgamated Mills Limited (BBAML) with effect from January 111968. During 1972 management of BBAML passed to S/s B.D.Kanoria B.N. Jhunjhunwala and B.P. Poddar. BBAML had thefollowing three jute mills in West Bengal:(a)Budge Budge Jute Mill at Budge Budge(b)Delta Mills at Manikpore P.O. Sankrail and(c)Cheviot Mills at Bade Kali Nagar P.O. Budge Budge.As per the Scheme of Arrangement sanctioned by the Calcutta HighCourt vide its order dated June 16 1975 two jute mills ofBBAML namely Budge Budge and Delta were transferred to two newlyincorporated companies viz. Budge Budge Jute & industriesLimited and Delta Jute & Industries Limited respectively. Thename of BBAML which retained Cheviot Mills was changed toCheviot Company Limited w.e.f. September 1 1976. The Companyis presently under the management of Shri Harsh Vardhan Kanoriason of Shri B.D. Kanoria. Shri H.V. Kanoria is a leadingindustrialist.History of the Jute DivisionThe jute mill of the Company is located at 19 Mehta Road BudgeBudge in District 24 Parganas of West Bengal. Jute is thetraditional and the main item of production of the Company. CCLhas been a producer of conventional jute products like sackingand hessian which are used as packing materials for food grainsbuilding materials fertilisers etc. It is to the credit ofthe Company that while in the 1980s many jute companies faredquite indifferently the Company managed to retain its healthand went ahead with the modernisation of their manufacturingfacilities.In 1989 the Company took a term loan from the All IndiaFinancial Institutions (IDBl lFCI and ICICI) aggregating Rs.192.00 lakhs under the Jute Modernisation Fund Scheme. Theassets created with this assistance enabled the Company tomanufacture special varieties of jute yarn. The Company startedexport of special quality yarns to woven carpet mills abroadsince 1991. The yarns manufactured by the Company have been wellreceived in countries like Belgium UK Germany Holland USAand other countries. Seeing the opportunities of exports theCompany went for an expansion of manufacturing facilities forspecial quality yarns in the year 1993-94. It installed 22numbers of precision winders and 5 nos. of twisting frames. Thebenefit of these machines installed have been available to theCompany only from the current financial year.History of the Plastic DivisionIn the domestic packing industry High Density Poly Ethylene(HDPE) and Poly Propylene (PP) woven sacks were makingsubstantial inroads into the traditional sacking and hessianmarkets. The Company exploited this opportunity and set up aseparate unit in New Okhla Industrial Development Authority(NOIDA) in Ghaziabad District of Uttar Pradesh for themanufacture of HDPE/PP laminated and unlaminated woven sacks andfabrics in 1986.In 1986 CCL applied to the Industrial Development Bank of India(IDBI) for a term loan of Rs.315.00 lakhs in order to set uptheir plastic division at NOIDA for the manufacture of HDPE/PPwoven sacks and fabrics. The amount was sanctioned under theProject Financing Participation Certificate Scheme (PFPCS)alongwith participation from the Industrial Credit andInvestment Corporation of India (ICICI).This plastic division was set up with a single tape extrusionline with an installed capacity of 1440 MT in a record time ofsix months. The unit commenced commercial production fromNovember 4 1986. This was further enhanced to 2426 MT by theaddition of an additional tape line in 1991-92. Due to labourproblems the management declared a lockout in August 1991which resulted in more than four months loss of production.Normal operations commenced from February 1992. The unit isrunning efficiently since then and is expected to contributesignificantly to the Company''s profits. In 1993-94 the Companyinstalled balancing equipments in order to improve capacityutilisation.The Company does not have any subsidiary.n