Pradeep Metals Ltd

Pradeep Metals Ltd

Incorporated in Jan.'82 as a private limited company and subsequently converted into a public limited company in Jan.'93 Pradeep Metals (PM) was promoted by V P Goyal to manufacture closed-die steel forgings (inst. cap. : 1200 tpa). Commercial production started in Jul.'83 at Dombivli (Thana district) Maharashtra. In 1989-90 the company expanded its capacity to 2400 tpa for forged components in the 500 gm to 8 kg weight range used mainly in the automobile industry. It came out with a public issue in Jan.'94 to set up a 12000-tpa unit for press forgings to produce precision parts in the 50 gm to 40 kg weight range which find application in the defence engineering petrochemicals sectors.The expansion programme started in Oct.'94 delayed by eight months as the plant and machinery arrived late at the site on account of customs problems. The plant at Dombivli (cap. : 2400 tpa) which used the hammer approach in forgings have been closed in 2000 due to low production and huge losses. The company is also in the process of implementing Enterprise Resource Planning(ERP) system and the system is under trials and will be operational by December 2001. During 2000-01 the company had issued 19800 10% Optionally Convertible Cumulative Redeemable Preference Shares of Rs.100/- each aggregating Rs.1980000 to ICICI Ltd as a part of One Time Settlement.The company made a reference to BIFR and the board has not yet yield any hearings in the case.