ANNUAL REPORT - 2001
CAPRIHANS INDIA LIMITED
ADDRESS OF THE CHAIRMAN AT THE EXTRAORDINARY GENERAL MEETING HELD ON 12TH
Ladies & Gentlemen,
I welcome you all to this Extraordinary General Meeting of the Company.
As you are aware, this meeting has been convened pursuant to the Order of
SEBI to consider and pass a Special Resolution ratifying the change in the
management control of the Company from EVC International NV to Ineos Vinyls
Holdings Ltd. and its wholly owned subsidiaries.
During 1999 and 2000, the profitability of EVC Group was adversely affected
due to high raw material prices and depressed PVC resin prices.
Consequently, there was a need to increase the equity base of EVC. Ineos
Vinyls Holdings Ltd.,acting through its subsidiaries, have acquired
approximately 68.7% of issued capital of EVC. This has resulted in change
in the indirect control of Caprihans from EVC to Ineos.
Ineos was set up in 1998 in a management buyout of Inspec's Ethylene Oxide
and Derivatives Complex at Antwerp. Today, Ineos is the second largest
chemical company in the UK with a turnover of US $ 5 billion and has more
than 10,000 employees. The business of Ineos include Acrylics, Chlor-
Alkalis, CFC replacements, Silicates, Phenol, Ethylene Oxides and PVC. It
is a closely held company and is financed through venture capital and bank
loans / bonds. The growth of Ineos has been mainly through acquisition of
business. It is expected that the acquisition of EVC by Ineos will benefit
Caprihans and its shareholders.
Ineos had made an application to SEBI seeking an exemption from making an
open offer. SEBI has granted the exemption subject to the condition that
the shareholders of Caprihans pass a Special Resolution ratifying the
change in the management control of the company in favour of Ineos. As per
SEBI's Order additional facility of voting through postal ballot was
provided to the shareholders of the Company for casting their vote.
The Company has received a very supportive response from the shareholders
for the postal ballot facility. As per Scrutineer's report, shareholders
holding 3075422 shares have voted in favour of the resolution and
shareholders holding only 18169 shares have voted against the resolution.
This meeting is being held to allow the members to vote in person / proxy.
The votes polled at this meeting will be aggregated with the votes polled
through ballot to arrive at the decision on the Resolution. The result will
be announced on Monday, 19th November 2001.
I take this opportunity to thank the shareholders personally and on behalf
of the Board for the continued confidence you have reposed in the Company
and its management.