case of williomsen and everday merger.pdf - Mimts.org

Started manufacture of dry cell batteries at Calcutta in 1926 with a capacity of 60 lakh cells a
year with imported components. Ever – Ready Co. (India) Ltd. Bought over the Ever – Ready
Co. (Great Britain) in 1934 and was incorporated in that year in India as private company. The
name. The name of the company was changed to National Carbon Co. (India) Ltd. In 1941 and
to Union Carbide India Ltd. In 1959. The battery facility was further expanded and in 1940 a
large battery plant with an initial capacity of 40 million dry cells was established in Calcutta. In
1956 the company set up the first zinc rolling mill to manufacture zinc alloys and photo
engraves‟ plate at Calcutta. In 1959 a modern flashlight case factory was inaugurated at
Lucknow. Chemicals and plastics plant was commissioned in 1961.
It set up a petrochemical complex in Bombay and a naphtha cracking unit along with associated
facilities was inaugurated in 1966. Plant was set up at Calcutta in 1965 for the manufacture of
midget electrodes & cinemas are carbons. Battery plant at Hyderabad was set up in 1966.
Pesticides formulation plant at Bhopal commenced production in 1969. In 1971 the electrolytic
manganese dioxide plant at Bombay was commissioned. In the same year the company
commenced marine products operations – 100% EOU. In 1979 the company completed the
expansion facilities at Bhopal for basic technical required to produce a range of MIC – based
pesticide.
By the 1980s, UCIL diversified its product range and was into batteries, carbon and metals,
plastics, marine products and agricultural chemicals, eventually the scope of the operations
increased and the company operated 15 plants at eight locations, including the headquarters in
Calcutta. Bhopal pesticides plant remained closed from December 1984 following gas leak at
MIC plant. The leakage of MIC a deadly poison claimed more than 4000 lives and more than
20,000 injured. After the leakage the Bhopal unit was closed as in early, 1985 the Government
of India cancelled the operating license of the Bhopal plant clearing the way for the plant‟s
dismantlement. After a few months after the disaster, the parent company Union Carbide
Corporation (USA) faced lawsuits in amounts far exceeding the company‟s net worth. A further
few months later, the efforts of the parent company to recover from the disaster and restore its
favorable public image suffered further due to leakages in the company‟s chemical plants in
USA. A few years later the parent company was taken over by GAF Corporation USA which
increased its stake in the company. Till the end of 1985, there were few indications of progress
in the settlement of the lawsuits against the company and UCIL was essentially out of the
pesticide business although the company‟s other divisions, especially those involving the
batteries and flashlights remained profitable. In 1989 the Chemicals and plastics unit at Mumbai
was bought over by Oswal Agro Mills. In 1994, the company was taken over by Mcleod Russel
Co. of Williamson Magor Group which acquired 50.9% stake in it.
Product Groups
The various product groups of the company include dry batteries, flashlights, electrolytic
manganese dioxide, carbons and metals and trading. The takeover of erstwhile Union Carbide
by Williamson magor group was mainly to utilize the vast distribution network of the company.
The company in the few years tried to utilize the distribution network to sell detergent products
under an arrangement with SPIC Fine Chemicals Ltd. But due to operational difficulties the sale
of detergent products was discontinued during the last quarter of the financial year 96. During
financial year 96, the company commenced marketing, distribution and sale of packet tea