WESTERN MINISTIL LTD.
OBJECTS & ACTIVITIES : Manufacture of steel ingots from scrap and other steel
PROMOTION : The Company was promoted by Western Rolling Mills Private Ltd.
TECHNICAL COLLABORATION : Mukand Iron & Steel Works, Ltd. agreed to give to
the company technical assistance for the manufacture of steel ingots and
other semi finished products.
OPERATIONS : Trial runs commenced in mid-July 1973.
In 1982, production at 32,510 tonnes showed an improvement of 17% over 1981.
Production would have been still better, but for the fact that only one
furnace could be operated from May 1982 to October 1982 due to breakdown of
one of the air blast circuit breakers. Sales rose to Rs. 11.34 cores. In
1983, production reached a record level of 43,044 tonnes. Sales at Rs. 16.05
crores reflected an increase of 41.5% over the previous year. A commensurate
increase was registered in profits also. In 1984, production and sales
increased further to 45,086 tonnes and Rs. 17.92 crores respectively.
However, profits declined marginally due to lower sales realisation in the
first quarter of the year and higher input costs. In 1985, production and
year and higher input costs. In 1985, production and sales increased to
47,795 tonnes and Rs. 24.30 crores respectively. There was a remarkable
growth in pre-tax profits also. In 1986, production rose by 25% to 59,681
tonnes and turnover rose marginally to Rs. 28.17 crores. Margins, however,
were under pressuree on account of sluggish demand and large scale imports of
billets by Government. During 1987, production and turnover improved to
69,282 tonnes and Rs. 32.01 crores respectively. During 1988-89 (15 months),
production and sales amounted to 61,793 tonnes and Rs. 46.94 crores
respectively. During 1989-90, production and sales improved to 70,318 tonnesd
and Rs. 57.22 crores respectively representing an incrase of 33% and 52% over
the annualised figures of the previous period. During 1990-91 (15 months)
production and sales further improved tto 84,222 tonnes and Rs. 73.06 crores
respectively. During 1991-92, production and turnovr amounted to 61,727
tonnes and Rs. 71.27 crores respectively. The overall working resulted in
loss mainly due to setback in the availability of steel billets, escalation
in input costs etc.
MODERNISATION ; During 1989-90, the Company completed the first phase of
modernisation programme in the Mulund Plant.
SUBSIDIARY COMPANY : In 1987, Chudiwala Steels, Ltd. Pondicherry, became a
subsidiary of the Company. During 1988-89, The name of the subsidiary was
changed to East Coast Steel Ltd.
RIGHTS ISSUE : During May-June 1992, the Company issued 7,19,165-15% Fully
convertible debntures of Rs. 55 each at par to the shareholders on rights
basis in the ratio of 5 debentures : 9 equity shares held. Additional
1,07,721 debentures allotted to retain oversubscription.
Another 35,835-15% Fully cconvertible debentures were issued to the
eemployees of the Company. (Only 300 debentures taken up). Unsubscribed portion of 35,500 debentures out of the employees quota of 35,535 debentures
was alloted to Indbank Mutual Fund, 35 debentures remained unsubscribed.
The entire face value of Rs. 55 of each debenture was to be converted into
one equity share of Rs. 10 each at a premium of Rs. 45 per share on the
expiry of 6 months from the date of allotment of debenturs i.e. on 2nd