MALU PAPER MILLS Share price

History and Corporate Structure of the CompanyIncorporation and initial progress:The company was incorporated on January 11 1994 under the Companies Act 1956 as Malu Solvex Limited. The registered office of the company is situated at Nagpur Maharashtra. The name of the company was later changed to Malu Paper Mills Limited on April 24 1998. The company belongs to the Malu group having interests in manufacturing & trading of electrodes Manganese Coal Lignite Imported Coal Mild steel ingots etc. other than Paper. The first paper machine of the company has commenced production in the year 1996 with a capacity to produce 5940 TPA of Kraft papers which later on with gradual up gradation and modification has been increased to 8250 TPAConsidering the vast potential MPML has also set up one more unit at the same location to produce 19800 TPA of Newsprint in 2001. The plants are running successfully and generating cash profits since its inceptionMPML has registered a gross turnover of Rs. 4867 Lacs and PBT of Rs. 444 Lacs for the FY 2004-05. The company has been granted incentives as notified in Package scheme of Incentive 1993 by Government of Maharashtra for its existing units.The unit is entitled to Deferment/exemption from payment of sales tax for 15 years subject to maximum of 125% of fixed assets value. The Company is entitled to refund of Octroi duty/ entry tax subject to maximum of 100% of fixed capital investment payable/paid on import of all items.The company now proposes to go in for a new paper machine line of 150 TPD capacity capable of manufacturing Premium quality Newsprint. The company has already identified the machines for this project. The machine is capable of manufacturing premium quality paper. The company wants to tap this niche market where there are very few players in the market. The strength of the company lies in executing the project at low cost.Important events in the history of the Company are as follows:Year Events1994 Company Incorporated as Malu Solvex Limited1996 Production Commenced with a capacity to produce 5940 TPA of Kraft Paper.1997 Production Capacity Increased to Produce 8250 TPA of Kraft Paper.1998 Name Changed to Malu Paper Mills Limited2001 Production Commenced with a capacity to produce 19800 TPA of Newsprint.