FGP Share price

The Company was jointly promoted by Fibreglass Ltd. UK andthe Bombay Company (Pvt) Ltd. it was incorporated as aPublic Limited Company on 27th June 1962 with financialand technical collaboration of Fibreglass Ltd. UK asubsidiary of Pilkington Brothers plc UK who areinternationally renowned eaters in glass technology.The Company''s name was changed from Fibre Glass PilkingtonLtd. to Fibreglass Pilkington Ltd. on 27th June 1963. Thename was again changed to FGP Ltd. on 15th April 1982consequent upon conversion of debentures issued to thepublic resulting in equity dilution and taking the companyout of the purview of the FERA. The name of the Company''spromoters Fibreglass Ltd. UK was also changed to FGPMoldings Ltd. UK on 27th April 1993.The Company''s factory located at Thane in the State ofMaharashtra began commercial production in 1965. Sincethen the Company has been manufacturing a comprehensiverange of glass fibres that are used in basic sectors ofIndia''s economy such as agriculture railways and othertransport industries the chemical industry (particularlyfertilizers plants) the electrical oil and boat buildingindustries. The initial collaboration agreement withFibreglass Ltd. gave the Company access to the latestdevelopments in international glass fibre technology.The Glass Fibre division of Ceat Ltd. located at Hyderabadwas bought over by the Company on 29th June 1993 pursuantto an MOU of even date as a going concern at a negotiatedprice of Rs.42 crores. The legal formalities for transferand conveyance of the Fixed Assets are in progress.With this acquisition the total installed capacity of FGPhas increased from 4000 TPA to 8000 TPA for Glass Textilesand has resulted in the Company having approximately 80% ofthe installed capacity of the total Glass Textilesmanufacturing capacity in India (based on the installedcapacities mentioned in the annual reports of the only twomanufacturers of Glass Textiles).The Company is considered a pioneer in the glass fibreindustry in India because there are only two glass fibremanufacturers in india and where as the Company commencedmanufacturing glass fibre in the late 1960s the otherplant was put up only in the late l970s.Of late the Company has been facing a severe liquiditycrunch. The main reason for this funds shortage is theutilisation of short term funds for the modernisation ofthe furnace at Thane. The Company is now taking remedialmeasures to correct this position by financialrestructuring. This Rights Offer of Equity Shares is a stepin that direction.