K M SUGAR MILLS Share price

OUR HISTORY & BACKGROUND:Our Company was originally formed as a partnership firm known as Kamlapat Motilal at Kanpur; the founder partners were Singhanias and Jhunjhunwalas and they had set up a small sugar milling plant at Kanpur in the year 1942. The mill experienced acute shortage of cane and consequently the plant was shifted to present site at village Masodha P.O Motinagar Dist. Faizabad between 1949 and 1950.During the year 1971 the firm was converted into Private Limited Company known as K. M. Sugar Mills (Pvt.) Ltd. and got registered with the Registrar of Companies Uttar Pradesh Kanpur. The Company became a deemed public company in the year 1974 in terms of provisions 43A of the Companies Act. The Company was converted back to a Private Limited Company under Section 43A (2A) of the Companies Act. in the year 2002. The Company was again converted into a public limited company with effect from April 20 2005At the time of the conversion of the firm into a Private Limited Company in 1971 Mr. L. K. Jhunjhunwala joined as Managing Director. During the year 1979 Singhanias transferred their stake in the Company to Jhunjhunwalas.Our Company expanded the sugar cane crushing capacity from 1800 TCD to 2500 TCD in the year 1980 and crushing capacities were increased from 2500 TCD to 3500 TCD in the year 2000 and further to 4500 TCD in the year 2002. The Company is now planning to increase its capacity upto 6500 TCD.The Company started a gas division for manufacturing of Industrial Oxygen Gas and Liquid Nitrogen in the year 1988 and the gas division was expanded to manufacture Dissolved Acetylene Gas in the year 2000. The technology of the gas division became obsolete over a period of time and management decided to close down this division in the year 2005. The distillery division of our Company was set up in the year 1995 to manufacture Rectified Spirit (45 KLPD) and Extra Neutral Alcohol (20 KLPD). In the year 2003 the division started production of Ethanol (30KLPD) and in the year 2004 the Extra Neutral Alcohol plant was modified to produce Ethanal and thereby increasing the total Ethanol production capacity to 50 KLPD.Our Company started production of Bio-Fertilizer using the by product of the sugar and distillery division ie. Press mud and spent wash in the year 2000.Our Company has also received the ISO 9001:2000 certification in 2003 for manufacture of white sugar.Under Mr. L.K. Jhunjhunwala?s guidance the Company has made steady and consistent progress year after year. He became the Chairman of the Company in the year 2002.Our Company?s turnover has grown from Rs. 5141 lacs in FY2000 to Rs. 8636 lacs in FY2004 and Net profit grew from Rs. 27.59 lacs in FY2000 to Rs. 550.31 lacs in FY2004. Our turnover for the three month period ended 31st December 2004 is Rs. 3821 lacs with profit after tax of Rs. 275 lacs.The present management of KMSM is vested with the board of directors comprising Mr. L. K. Jhunjhunwala as the Chairman Mr. Aditya Jhunjhunwala as Managing Director and Mr. Sanjay Jhunjhunwala as Jt. Managing Director and other directors as mentioned under the heading ?Management?.Mr. P.C. Jhunjhunwala was one of the promoters of our Company. He shifted his base in early eighty?s to Mumbai to concentrate on his other business interests. Though he continued to be on the board as Non Executive Director he did n?t take active interest in the business of the Company due to his other business interests.In view of management?s policy to comply with the Corporate Governance norms the non- executive directors Mr. P C Jhunjhunwala and Mr. Sanjay Modi resigned from Board and Mr. D K Kapila a professional director was inducted on the board with effect from 31st March 2005.Major events in our history are given below: Year Event 1942 Started operations as partnership firm in Kanpur1949-1950 Shifted operations to Faizabad1958 Purchased sugar factory at Bhatni Dist. Deoria (U.P.) from M/s M P Sugar Mills Private Ltd.1971 State of U.P. acquired the Bhatni Sugar Mills1971 Incorporation of the Company1980 Expansion of Sugar Division from 1800TCD to 2500TCD1988 The Company set up its Gas Unit1993 The Company commences setting up of its Distillery Unit1995 Commencement of production of Rectified Spirit at licensed and installed capacity of 45 KLPD and ENA at licensed and installed capacity of 20 KLPD2000 Increase in crushing capacity from 2500 TCD to 3500 TCD2002 Distillery division achieved record production of 11158328 litres of Rectified Spirit2003 Increase in crushing capacity from 3500 TCD to 4500 TCD2003 Started production of Fuel Grade Ethanol2003 ISO 9001 : 2000 certification by ICS2003 The Company adopted the concept of Total Productivity Maintenance (TPM) and 5s Concept2004 Started implementation of total productivity maintenance (TPM) Change in Registered OfficeOur registered office is situated at 11 Moti Bhawan CollectorganjKanpur - 208 001 Uttar Pradesh India and is taken on rent. There hasnot been any change in the registered office of the Company since itsincorporation.Changes in Name:There have not been any changes in the name of the Company however theCompany has changed it status from Private to Public Limited asdetailed below:Previous Name/Status Changed Name/Status K.M. Sugar Mills Private Limited K.M. Sugar Mills LimitedK.M. Sugar Mills Limited K.M. Sugar MillsK.M. Sugar Mills Private Limited K.M. Sugar Mills LimitedDate of Change Reason 13th September 1974 Became a deemed public company under the provisions of section 43A(1A) of the Companies Act 1956 24th April 2002 Companies Amendment ActPrivate Limited (2000) came into force doing away with the concept of deemed public company 20th April 2005 Accessing the capital markets for expansion