The Company was incorporated in 1958 as a private limitedcompany to manutacture man made fibres. It was converted to apublic limited company and consequent upon the conversion itsname was changed to ''Nirlon Synthetic Fibres and ChemicalsLimited'' in March 1963. Subsequently in 1989 it obtained aCertificate ot Change ot Name to ''Nirlon Limited''. Today Nirlon is a multi-product/multi-locational companyengaged in the manufacture of Nylon Filament (NFY) PolyesterFilament Yarn (PFY) Nylon Tyre Cord (NTC) and Conveyor belts.Its manutacturing facilities are located at Goregaon Tarapurand Roha. The Company''s aggregate capacity under the broadbanding policy is to manutacture 14500 Mt of Synthetic FilamentYarn including Industrial Yarn/tyrecord at Goregaon and Tarapur.The present production pattern is as under: Nylon 4392 tpaPolyester 3300 tpaTyrecord 4300 tpaThe Company also produces 12 Iakh pcs. p.a. of V - Belts atRoha.The Company pioneered the development of synthetic yarn in thecountry and was the first man made fibre plant to be establishedin the country. It was also the first to introduce a broadrange of speciality yarns developed indigenously through itsgovernment recognised R&D centre.Nirlon operated under the most difficult environment andrestrictive government policies and yet became a Blue Chipcompany through dedicated team effort of the joint promoters andmanagement executives. It established a record for payment ofDividend for 22 consecutive years. Furthermore 48% of itsEquity Capital comprises of Bonus Shares (prior to thePreferential Offer and Rights Issue).Nirlon provides jobs to 2500 workers scientistsmanagement/production/marketing staff supporting over 10000family members. The industrial relations have been exemplary.During the first 25 years of operations from 1963-64 upto thefinancial year 1984-85 the Company registered significantgrowth on all fronts. During this period production increasedfrom a modest 400 tonnes per annum to 11000 tonnes per annum.The turnover increased from Rs. 3 crores to Rs. 183 crores withnet profit registering a healthy growth from Rs. 1.09 crores toRs. 8.80 crores.In the early eighties the Company embarked on an ambitious andsubstantial expansion programme to keep pace with the changingeconomic scenario and to meet domestic competition. The saidexpansion was to be funded by taking recourse to externalborrowings at the prevailing rates considered attractive andeconomical.However sudden policy changes introduced by the CentralGovernment in the excise duty structure coupled with withdrawalof anti-dumping duty affected the entire Synthetic Yarn Industryas prices dropped substantially. Further changes in the moneymarkets made funds dearer. Nirlon started making losses as a result of reduced inflow offunds and tunds locked in capital equipment which could not beput to use due to non-availability of additional funds. The Company was referred to the BIFR under Section 15(1) of SICA1985 and was declared a sick unit in December 1988.Subsequently the BIFR at its hearing on November 191993approved the rehabilitation scheme (as stated below) for therevival of the Company. The BlFR has appointed IDBI as theMonitoring Agency (MA) to monitor the rehabilitation scheme.Even during this period the Company has not had any interruptionin its normal production and had a turnover in excess of Rs. 120crores. Currently it has also started generating cash profitsdue to the improvement in its realisations under the presenttariff structure. For the current year ended 31/3/94 it hasgenerated a cash profit of Rs. 0.45 crore on a turnover of Rs.160.49 crores. With the successful implementation of theRehabilitation Scheme the company is expected to have a netprofit of Rs. 20.59 crores on a turnover of Rs. 259.84 crores inthe year 1996-97 as per BlFR projections. Also with theproposed sale/development of surplus FSI at the Company''s landat Goregaon it will be able to wipe out all it accumulatedlosses by the year 1995-96 as per the BlFR order. The company has already repaid the outstanding dues of the FixedDeposit holders to the extent claimed by the depositors and partof the Debentureholders along with the Interest on the accruedInterest as per the IBlFR order in 1994. b. Rehabilitation SchemeThe scheme envisages completion of the ongoing expansion of thetyrecord division including equipment for production ofPolyester Industrial Yarn (PlY) and modernisation/balancing ofall the divisions viz. Nylon Filament Yarn (NFY) PolyesterFilament Yarn (PFY) Tyrecord and Belting Division. It alsoenvisages the settlement of dues of Foreign Banks at Rs. 18.75croros. The scheme also envisages concessions/reliefs fromFinancial Institutions Indian Banks Foreign Banks Leasingcompanies Public Fixed Deposit holders Debentureholders theGovernment and the Workers.Under the scheme the Company has been granted approval tosell/develop surplus FSI (i.e. area available for furtherconstruction) at the Company''s factory located in GoregaonBombay. The proceed of such a sale of surplus FSl would be usedto accelerated the repayment schedule of liabilities of theCompany.
Name | Position |
---|---|
Mr. Rajinder Pal Singh | Chairman & Ind.Dire (Non-Exe) |
Mr. Rahul V Sagar | Executive Director & CEO |
Ms. Anjali Seth | Ind. Non-Executive Director |
Mr. Sridhar Srinivasan | Ind. Non-Executive Director |
Mr. Kunnasagaran Chinniah | Nominee Director |