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Gujarat Telephone Cables Ltd.

BSE: 500175 Sector: Engineering
BSE 05:30 | 01 Jan Gujarat Telephone Cables Ltd
NSE 05:30 | 01 Jan Gujarat Telephone Cables Ltd

Gujarat Telephone Cables Ltd. (GUJRATTELE) - Company History

Incorporated in Feb.'83 as a private limited company Gujarat Telephone Cables (GTCL) was converted into a public limited company in Dec.'86. It manufactures polyethylene-insulated jelly-filled telephone cables (PIJFTC) in technical collaboration with Rosendahl Maschinen Austria a subsidiary of Kable de Lyon and Altcatel France which are world leaders in the field of telecommunication cables and equipment. It made a public issue of 28.5 lac equity shares at par aggregating Rs 2.85 cr in Oct.'89 to part-finance its PIJFTC project and to meet issue expenses.The company started commercial production in Dec.'89 but capacity remained largely unutilised as the order position was low. Tenders floated by the DOT in 1989 could only be awarded in Jul.'91. However from 1991-92 GTCL started receiving regular orders and production increased substantially. To meet its long-term working capital requirements and to finance normal capital expenditure it issued equity shares aggregating Rs 6.01 cr on a rights basis in Aug.'92.The company again went public in Dec.'93 to part-finance the cost of increasing the installed capacity of PIJFTC from 6.25 lac ckm pa to 18 lac ckm pa (cost : Rs 27.81 cr). During the second half of 1994 the company expanded its installed capacity from 6.25 lac ckm to 25 lac ckm. It is considering the possibility of setting up a 5 MW wind farm. In 1996 the installed capacity of PIJF Telephone Cables has expanded from 25 lacs CKM (Conductor Kilometers) to 98 lacs CKM.It has commissioned 10 Wind Turbine Generators with the capacity of 3 M W balance 7 WTGs with the capacity of 2 M W will be commissioned during year of 1996-97. The company has set up a power plant with a capacity of 4.5 MW at a cost of Rs.10.41 crore which was funded by way of Term Loan from financial institutions of Rs.7 crore and balance by way of internal accruals.The company had set up a unit for the manufacture of Copper Rods from Copper cathode.The total cost was Rs 13.09 cr which was funded by way term loan of Rs 8.50 cr from financial institution and balance by way of internal accruals. The commercial production was commenced in 1997.The equity capital was increased to Rs 31.07 cr due to conversion of 4829195 fully convertible debentures into equity shares at a premium of Rs 20 per share.During 1996-97 the company received ISO 9001 certification from KMPG Peat Marwick of USA. The captive power plant with 4.5 MW capacity has commenced operations which will reduce the power cost and ensure continous interruped power supply.RHP Cables and Industries Ltd have become the subsidiary of the company during 1999-2000.