PG Foils Share price

PG Foils Limited incorporated on 07.11.79 as a publiclimited company has been promoted by Prem group ofindustries and Rajasthan Industrial and InvestmentCorporation (RIICO) as a joint venture. RIICO contributeda sum of Rs. 10 lacs towards the equity of the company.During 1988 the equity of RIICO has been transferred to theprivate promoters under the buy-back arrangement.The Registered office of the company was in Rajasthan upto7.8.85 but was shifted to Ahmedabad (Gujarat) thereafter.PGFL setup an aluminium foil manufacturing plant with aninstalled Rolling capacity of 5000 MT per annum byimporting a second hand plant from ALCOA (GB) Ltd. Londonat a cost of Rs. 110 lacs (approx). The plant has beensupplied by Tenstate Ltd. London. The Project was set upat a cost of Rs. 325 lacs which was partly financed by termloans of Rs. 60 lacs from ICICI Rs. 90 lacs form IDBI andRs. 50 lacs from IFCl. As per the Company the secondhandmachinery is still in good condition for production.Though the Certificate of Commencement of Business wasreceived on 6.12.79 the actual commercial production couldcommence from Nov. 81 after obtention of the requiredlicense import of machinery and implementation of theproject.The company is engaged in the manufacture of foils ofvarious qualities and thickness e.g. tagger foil pharmafoils laminated foils blister foils paper laminatedboard and printed foils. It commenced commercialproduction in November 1981 and had accumulated losses tothe extent of Rs 324.10 lacs by 1986-87. However in1987-88 it turned corner and has been making consistentprofits since then. The company has now not only writtenoff its entire accumulated losses but has also createdsubstantial reserves.The critical factors for the success of the project aretimely availability of raw material uninterrupted supply ofpower maintaining of drug policy of the Government whichrequires majority of the pharmaceutical products to bepackaged with aluminium foil.SUBSIDIARY COMPANYThe Company has no subsidiary.