POLYCON INTERNATIONAL Share price

Polycon International Ltd. (PIL) is a Public Ltd companyincorporated on October 17th 1991. The company belongs tothe "Baid Group" of Rajasthan which has a successful trackrecord in various diverse fields of business. The companywas promoted with a view of establishing a compositemanufacturing unit for production of variety of plasticgoods and its processing machineries. The company ispresently engaged in manufacture of lids for water storagecontainers self watering plastic pots for plants pipefittings machineries dies and moulds for plasticprocessing master batches etc. at its plants at RIICOIndustrial Area Heerawala Village Bassi Dist.Jaipur. Thecompany sells its products under the famous brand name of"Polycon". At present the installed capacity of injectionMoulded articles is about 150 tonnes and for master batchesis about 600 tons and the capacity of manufacturingmachines dies and moulds is not restricted as the same canbe increased substantially just by increasing the volume ofinputs. In addition the company has also been doing marketpromotional activities for marketing of LLDPE water andchemical storage tanks. The company is having franchiseesat various places in India who are manufacturing water andchemical storage tanks under the brand name of "Polycon"under the technical guidance and supervision of thecompany. PIL is also assisting such franchisees inmarketing of the product and also in the supply ofessential raw materials. In addition the company is engagedin export of plant and machinery used in the manufacturingof water & chemical storage tanks. Also it exports lidsfor the storage tanks to countries like Abu Dhabi (UAE) andJedah.The company has obtained the right to use the brand namePOLYCON from the brand name owners M/s. Baid RotomouldersPrivate Limited (formerly Baid Industrial Corporation) videtheir agreement dated January 2 1995. As per the terms ofthe agreement the licensor has agreed not to give the rightof using the brand name it owns to any third party and thatthis right of sub-licensing the brand name to any thirdparty rests only with the licensee i.e. PIL. Since thebrand name ''Polycon'' is being owned by Baid RotomouldersPvt Ltd. they will continue to use it for its products. Inconsideration for use of the brand name PIL has paid alumpsum deposit of Rs.1 crore which is adjustable inpayment of Royalty. Also the company has to pay Rs.0.10per litre of the total capacity of tanks manufactured andmarketed by it and its sub-licensee under the licensedtrade mark in the licensed teritory. It shall be calculatedat the end of every quarter and shall become payable withinnext fifteen days. The licence is initially valid for 5years subject to extension by mutual consent. However theinitial deposit of Rs 1.00 cr shall be adjusted towards theamount of royalty payable which will be in the range of4%-5% of the selling price of the tanks.Note: Attention of investors is drawn to the fact that thecompany has paid a lumpsum of Rs.1 crore as deposit toacquire the right for using the brand name of "POLYCON"from Baid Rotomoulders Pvt Ltd. in whichDirectors/Promoters are interested. This deposit isadjustable against the royalty payment which will be in therange of 4%.-5% of the selling price of the tanks.The company obtained its certificate of commencement ofbusiness on 31st December 1991. The company commenced itscommercial activity from August 1992 by export ofmachinery to UAE. There has been no closures/labourproblems or delays etc in commencement of commercialproduction in the past.In order to manufacture and market its wide range of waterand chemical storage tanks in the middle east countriesunder the brand name of "Polycon" the company had set up ajoint venture company with Awlad Naseer Corporation AbuDhabi (UAE) in the year 1991 under the name of Polycon GulfUnited. The company has an equity participation of 25% inthe venture. The products of the joint venture company havebeen very well accepted in the market and it declared amaiden dividend of 37.50% for the year ended 31.12.94. Thefinancial performance of the joint venture company is asunder :MAIN OBJECTS OF THE COMPANYThe main objects of the company as contained in theMemorandum and Articles of the Association of the companyare as under :-1. To manufacture trade export import process moulddesign refine produce manipulate fabricate erectprovide technical know how design and otherwise deal inplant and machinery turn key projects of Roto mouldedwater storage tanks PVC tanks PVC structural elements andother allied material and to collaborate participatefinance manage hold or otherwise be associated in anycapacity in projects industries joint venture projectsdealing in these articles.2. To become vested with by change of constitution frompartnership firm to a Public Ltd company and continue thebusiness so far being carried on in partnership under thename and style of "POLYCON INTERNATIONAL" by the firstDirectors of this Company including all its assets rightsbenefits titles interest approvals registrationspermits facilities concessions sanctions privilegeslicenses debts liabilities and obligations of the saidpartnership business and in connection there with the saidfirm will cease to function on the incorporation of theCompany.3. To manufacture process mould design refine produceimport export purchase sell or to otherwise deal in allkinds of products goods and merchandise made of HDPE.LDPE.. poly-propline polytheline PVC plastic includingcontainers section drums bottles packing materialsbiogas holders doors windows cabins pipes furniturefixtures gates parts and accessories.SUBSIDIARY OF THE COMPANYThere is no subsidiary of the company.