Vedanta Share price

Sesa Goa Limited was established in 1954 under thePortuguese Commercial Code and with the application ofthe Companies Act 1956(" the Act") to Goa the Companywas incorporated under the Act in 1965 as a Private limitedCompany with its entire shares held by Finsider S.P.A..(Finsider) a part of the IR group of Italy which was ownedby the Government of Italy.In Apr)I 1979 another fully owned subsidiary of Finsider - M/s.Mingoa Private Limited which was also operating in Goa inthe business of mining and export of iron ore - was mergedwith Sesa Goa Limited. This scheme of amalgamation wasapproved by the Court of the Judicial Commissioner GoaDaman and Diu Panaji in its order dated 25.03.80.Subsequently in the course of restructuring certainsubsidiaries in the IRI group the shares of Sesa Goa weretransferred from Finsider Spa to Finsider InternationalS.A. Luxembourg and then from there to Finsider InternationalCo. Ltd. UK (FINCO) both subsidiaries within the IRI group.With the application of the Foreign Exchange RegulationsAct 1973 (FERA) in a scheme of dilution of Foreign equityin 1979 Sesa Goa which was then a Private LimitedCompany was converted into a Public Limited Company.Thereafter FINCO disinvested 60% of its shareholding inSesa Goa by way of a Public Offer for Sale to the IndianPublic. In the early 1990''s the Government with its policy ofeconomic liberalisation permitted Finsider (which by thenwas a subsidiary of Ilva Laminati Piani - a leadingmanufacturer of steel products (a part of IRI group of Italy)to increase its shareholding in the company to 51%.The Company was awarded the 1993 Corporate PerformanceAward for the Private Sector Mini Giant Company by theEconomic Times - Harvard Business School Association ofIndia.The Company has applied for ISO 9002 Certification for its''Mining Division and significant progress has been made onthis front. The company is optimistic of receiving thiscertification shortly.In the second quarter of 1995 the Government of Italy aspart of its privatisation programme disinvested its entireholding in Ilva Laminati Piani in favour of M/s RILP S.r.L inwhich the 73.40% of the shares are held by the Riva groupof Italy who are one of the leading steel manufacturers inEurope and the remaining 26.60% are held by Italian banksMAIN OBJECTS OF THE COMPANYThe main objects of the Company are as set out in theMemorandum of Association of the Company and inter-aliainclude the following1.To continue to carry on the business of this Companywhich was a Sociedade Por Quotas ResponsabilidadeLimitada and to carry on all or any of the business ofprospecting exploring mining winning importingexporting dealing processing buying selling anddistributing and generally dealing in earth and ore of allkinds including iron ore ferro manganese china clayquartz silica abrasive minerals aluminium mineralsanlydrite antimony minerals aquamarine asbestosbarium minerals bauxite fluorspars and others.2.To purchase take on lease or otherwise acquire mineslands and mineral properties and also grantsconcession leases claims licences of or other interestsin mines mining rights lands mineral properties waterrights either absolutely or conditionally and either solelyor jointly with others.3.To Crush win get quarry smelt calcine refine dressamalgamate manipulate and prepare for market oremetal and mineral substances of all kinds and to carryon any other metallurgical operations which may seemconducive to any of the Company''s objects.4.To establish maintain and operate shipping roadtransport services and all ancillary services and forthose purposes or as independent undertakinigs topurchase take in exchange charter hire build constructor otherwise acquire and to won work manage andtrade with ships trawlers drifters tugs and vesselsmotor and other vehicles with all necessary andconvenient equipments stores~and accessories and tomaintain repair fit out refit improve insure alter sellexchange or let out on hire or hire purchase or Charteror otherwise deal with and dispose of any of the shipsvessels and vehicles or any of the equipments storesand accessories of the Company.5.To carry on the business as structural engineersconstruction engineers mechanical engineers electricalengineers automobile engineers fabricators ironfounders fitters wire drawers tool-maker enamellerselectroplaters painters tools equipment metal workerssmiths wood-workers and metallurgists and in particularto manufacture and fabricate engineering goodsmachine tools precision instruments pneumatic toolsstructural steels and material handling equipment.6.To carry on the business of manufacturing convertingaltering processing assembling improving buyingselling exchanging importing exporting operatingdistributing or otherwise dealing in any or all of thefollowing items namely Pig iron and all types of steelincluding alloy special steels stainless steel cold andhot rolled steels.***4PRESENT BUSINESS OF THE COMPANYThe company presently has the following divisions:1. Mining Division:Sesa Goa Limited is mainly engaged in the business ofprospecting mining processing and export of iron ore. Itstarted its mining operations in Goa in 1954 and over theyears its export of iron ore has increased from 3 lakh tpain the fifties to 12 lakh tpa in the sixties and 20 lakhtpa in the seventies. Today it exports over 40 lakh tpa andis Goa''s biggest iron ore exporter. (Source: Goa MineralOre Exports March 31 1994) It exports iron ore tocountries like Japan Italy Holland Belgium China andRomania. This division today accounts for the major part ofthe Company''s total turnover. The division also rendersmining services to other parties.2. Shipbuilding and Engineering Division:Sesa Goa owned a fleet of 8 barges which are used in-houseto service its business operations. 6 barges and one launchwere transferred to Sesa Shipping Ltd. in March 1995 for atotal consideration of Rs.3.88 crore. For further detailsplease refer to the para entitled "Project - Investment inSesa Shipping Ltd." of the offer document elsewhere in theletter of offer.In 1984 the company as a logical integration of activitiesestablished a barge construction and repair yard atSirsaim Goa. Over the years this has grown into a mediumsize shipyard with a capability of designing building andoutfitting small/medium size vessels and has constructed 45vessels to date.The division also has an integrated facility for the designdevelopment and manufacture of beneficiation plantequipments bulk handling equipments overhauling ofengines manufacture of ships ancillaries like stern gear andmiscellaneous deck machinery and manufacture ofequipment for blast furnaces pig iron plant and coke ovensetc.3. Pig Iron Division:In 1992 the company was among the first to commission amodern mini blast furnace in the country of a capacity of75000 tpa as part of its plans to forward integrate andadd value to its iron ore. The Company has sinceestablished itself as one of the leading manufacturer oflow phosphorus foundry grade pig iron of quality standards.