DAIKAFFIL CHEMICALS INDIA Share price

Daikaffil Chemicals India Pvt. Ltd. (Daikaffil) wasincorporated on 19th June 1992 by taking over apartnership concern M/s. A. J.Chemical Industries belongingto the Indian promoters Mr. J. G. Patel and Mr. Amit Patel.The partnership was in existence since October 1979.Immediately after its incorporation Daikaffil acquired allthe assets and liabilities of A. J. Chemicals at the bookvalue and allotted equity shares on 25th November 1992 fora total value of Rs.2429000 as consideration. The Companyentered into a financial cum technical support arrangementwith Daika (Japan) Limited a leading Japanese tradinghouse.The financial participation and technical supportarrangement with Daika (Japan) had received approval fromthe Secretariat of Industrial Approvals Ministry ofIndustry Government of India in October 1992 and Daika(Japan) contributed 49% of the initial capital of Rs.50lacs. Additionally Daika (Japan) entered into an MOU withDaikaffil for buy back of its entire production afterapproval for the next ten years. The Company thus set up aunit for manufacture of Di-nitro Stilbene (DNS) with acapacity of 120 tpa. The unit commenced commercialproduction in January 1993 and has already produced 160tons of DNS as of 31st December 1994. This has beenexported to Daika (Japan) following approval from themafter comprehensive quality tests.Given the success of its product Daikaffil has decided toexpand and modernise the existing capacity of DNS andforward integrate to manufacture Di-amino StilbeneDi-sulphonic Acid (DASDA) and Optical Brightening Agents(OBA). Daikaffil has been converted into a public limitedcompany vide special resolution passed at its EGM heldon 23rd December 1994 and approval for change of nameto Daikaffil Chemicals India Limited has been received on10th January 1995. The Company has not received aCertificate of Commencement of Business as it wasincorporated as a private limited company.The Company has not faced any labour problems/defaults/litigations that have resulted in closure or suspension ofbusiness activities in the past.