Modistone (ML) was incorporated in Jul.'30 as a private limited company by Firestone Tyre and Rubber Company, US. In Jun.'79, it was made a public limited company. Later, it taken over by the Modi group in 1981. Other group companies are Modi Xerox, Modi Olivetti, Modi Rubber, etc. ML is into trading and manufacture of tyres, tubes and allied products. Its products include automobile tyres, flaps, tubes, etc.
In 1992-93, it proposed to carry out a modernisation programme, for which it proposed a rights issue. It could not raise the required funds from the capital market due to set-back in the operations. Consequently, the plans for modernisation were restructured. The company was operating under continuous losses. Labour unrest further aggravated the losses. As a result, it became a potentially sick company in 1993-94. As on 31 Mar.'94, its accumulated losses exceeded the net worth. In 1994-95, it was referred to the BIFR. The company came out with a rights issue of FCDs in Mar.'95, to part-finance normal capital expenditure, to build-up critical spares, inventory, etc, at a project cost of Rs 36 cr. After the rights issue, ML became a subsidiary of Modi Rubber.
Subsequent to the rights issue in Mar.'95, the net worth of the company became positive. Accordingly, the BIFR discharged it from the purview of Sick Industrial Companies Act, 1985. In Aug.'96, the company was merged with Modi Rubber, the holding company. ML exports its products to Germany, the UK, the UAE, Iraq, Afghanisthan, etc.
During the year 1998-99, the Company made a reference to the BIFR and it was declared a 'Sick Industrial Company' by BIFR. IFCI was appointed as the operating agency. The Company has submitted a Rehabilitation project and the IFCI has submitted its report to BIFR.