VELJAN DENISON Share price

A. HISTORY & BACKGROUND OF THE COMPANYThe Company was incorporated as a Public Limited company on 19thDecember 1973 under the name "Denison Hydraulics India Limited"with Shri V C Janardan Rao and M/s Veljan Hydrair Ltd. as Indianpromoters in association with Abex corporation of U.S.A. for themanufacture of high Pressure Hydraulic Systems and Components.Shri V C Janardan Rao has been in the line since 1965 havingpromoted M/s Veljan Hydrair Limited which has two industrialunits to manufacture all types of Fluid power and alliedequipments.Recognising Shri Rao's achievements and that of Veljan a numberof foreign companies pioneers in this industry approached himoffering technology/transfer related agreements coupled withfinancial participation in a new venture to service the needs ofthe managing markets in and around India and Asia. After a dueassessment M/s Abex corporation USA through its DenisonDivision selected Shri Rao and Veljan as the Indian promoterfrom amongst several others to setup the new venture of DenisonHydraulics India Limited to manufacture High Pressure HydraulicComponents and Systems.The company had also obtained technical collaboration form AbexCorporation of U.S.A. through their Denison Division which wasat that time controlling the Hydraulic interest of AbexCorporation. The Abex Corporation as were holding 234000equity shares constituting 17.33% of the total paid up equityshare capital of the company.In the year 1986-87 the Abex Corporation transferred theirinterests in the Denison Division to M/s AB Hagglund & Soner ofSweden and since then the Denison Division came to be known asHagglunds Denison worldwide. As a result of the acquisition ofthe Denison Division by AB Hagglund & Soner from the AbexCorporation AB Hagglund & Soner Sweden have reaffirmed theircontinued technical support and help to the company covering allthe products for which know-how and the collaboration agreementswere earlier entered into by the company with the AbexCorporation. The name of the company was also changed in theyear 1988-99 from Denison Hydraulics India Limited to reflectits association with Hagglunds. The Equity shares [234000equity shares] held by the Abex Corporation in this company havesince been transferred to AB Hagglund & Soner of Sweden [laterrenamed as M/s Incentive [Fastighet AB] with the necessaryapproval of there for being obtained from the Reserve Bank ofIndia.The company commenced its commercial production in the year 1977at its plant located at Patancheru in Medak District nearHyderabad Andhra Pradesh.From the very inception the Company has followed the policy offull absorption of the technology and indigenisation besidesfurthering development of various products inhouse. Over theperiod the Company has gained sufficient expertise inmanufacturing these High Technology products.E. SUBSIDIARY / GROUP COMPANIESThe Company does not have any subsidiary company within themeaning of Companies Act 1956.The promoters have not promoted any other ventures nor are theysignatories to Memorandum and Articles of Association of anyother Companies other than Veljan Hydrair Limited.There are no sales or purchases between the Company and VeljanHydrair Ltd. which exceed 10% of the total sales or purchase ofthe company nor are there any material items of income orexpenditure arising out of transactions in the promoter group.