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United Soyaa Products Ltd.

BSE: 519001 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan United Soyaa Products Ltd
NSE 05:30 | 01 Jan United Soyaa Products Ltd

United Soyaa Products Ltd. (UNITEDSOYAAPR) - Company History

UNITED SOYA PRODUCTS LTD. OBJECTS & ACTIVITIES : Manufacture of vegetable oil from soyabeen/rice bren, other minor oil seeds and refined vegetable oil. PROMOTION : The Company was promoted by Raj Kumar Gupta and his associates in the United Group of Companies. TECHNICAL KNOW-HOW : The Company engaged into an agreement with ballestre(India) Ltd., for know-how based on technology of construsione Meccaniche Bernardini Pomezia (Rome). Ballestra (India), Ltd. were to supply complete soyabeen seed preperation plant, solvent extraction plant, continuous dedorising plant etc. along with imported machinery and all equipment and accessories within battery limits. OPERATIONS : Commercial production commenced during 1986-87. During 1986-87, production and sales of refined oil amounted to 5,000 tonnes and Rs.9.13 crores respectively. In 1987-88, production and sales declined substantially to 373 tonnes and Rs.0.96 crores respectively, as the operations were affected by drought and delay in the implementation of solvent extraction plant. The Company's 'Teacher' brand soyabeen oil was well received in the markets. During 1988-89, the operations were affected mainly due to the delay in completion of the solvent extraction plant project. Production and sales for the year amounted to 475 tonnes and Rs.1 crore respectively. In 1989-90, there were no manufacturing operations in the refinery unit as the refinery alone was considered uneconomical as also as a measure to control mounting cash losses. The Company successfully completed establishment of the solvent extraction plant. During 1990-91, the Company commissioned its solvent extraction plant and also restarted its refinery operations. Turnover amounted to Rs.10.17 crores. The Company proposed to process 1,00,000 tonnes of soyabeen during 1991-92 out of which about 70% processing was tied-up with ITC Ltd. EXPANSION : During 1988-89, the Company proposed to set up a second line parallel to the existing plant by installing solvent extraction plant based on minor oil seeds such as mehua, sal, mango etc. As a measure of diversification, the Company proposed to set up a project for the manufacture of lecithin, a basic ingredient used in various pharmaceutical, cosmetic, paints and confectionary/food products. DIVERSIFICATION : The Company proposed to introduce high protein products. FINANCE : IFCI, IDBI and ICICI sanctioned term loans of Rs.95 lakhs, Rs.187 lakhs and Rs.94 lakhs respectively. Term loans of Rs.100 lakhs were also sanctioned by commercial banks. Subsequently, the cost of the project went up to Rs.1,561 lakhs. The cost overrun of Rs.794 lakhs was met through term loans from financial institutions and banks and unsecured loans brought in by the promoters and associates.