Herdillia Oxides and Electronics is promoted by Herdillia Chemicals with equity participation from Asian Development Bank and International Finance Corporation, Washington. The company was incorporated in the year 1987 and commercial production started in 1991. The manufacturing unit is situated at Lote Parshuram in Ratnagiri district of Maharashtra. The company manufactures Magnetic Iron Oxides (MIOs), technically known as Gamma Ferric Oxide. The entire domestic requirement of MIO was met by imports. The company's MIO project has been set up in technical collaboration with Magnox Inc of USA, in which Mitsui Mining and Smelting Inc, has a majority holding, has a sizeable share in the market for MIO worldwide. Almost 50% of MIOs manufactured by Magnox is being exported to Europe and Asia-Pacific region. Magnox has provided the company with the basic engineering package, know-how for quality control and cobalt absorption technology for cobalt grade MIO. MIO is the magnetically active layer in the coatings applied to audio tapes, video tapes, computer tapes and floppy disks. It is also used in toners for reprographic machines and in MICR inks. The company is the only manufacturer of MIO in India besides five countries all over the world. During 1998-99, The company upgraded the facilities for manufacture of IOP and FF to meet new standards. A new grade of MIO was introduced to combat imports of a grade imported into India in October 1998. The company is planning for product upgradation and magnetic particles studies.It is also in the process of developing a new grade of MIO(Magnetic Iron Oxide) for further improvement in pigment to suit requirements of customers.