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

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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
procured from the group company Mcleod Russel (India) Ltd., under the brand name „Tez‟. The product was initially launched in the States of Uttar Pradesh and Tamil Nadu, and the results have been encouraging. In the beginning of financial year 97, the company entered into an agreement with Hindustan Latex Ltd. For the distribution of condoms under the well established brand name “Nirodh”. Geographic Scope of operations Plant Locations and their major product/s 1. Calcutta (Calcutta, WB) Batteries, Arc photo Engravers‟ Plates / Strips for printing, Carbon Electrodes 2. Chennai (madras, TN) Batteries 3. Hyderabad (Hyderabad, AP) Batteries, Electrolytic Manganese Dioxide 4. Lucknow (Lucknow, UP) Flashlight Cases, Castings, hard Facing & Tube Rods 5. Srinagar (Srinagar, J&K) Batteries Product Market Scope Operations Review of EIL in financial Year96 Dry Battery Cells The strong recoveries of the Indian economy and good industrial growth have helped in higher demand for consumer goods and commodities including dry batteries and flashlights (the major products) of EIL. The dry battery market was buoyant during the year, and “Eveready” battery sales increased by 12% over the previous year to record an all time high of 655 million pieces. In financial year 96, the company launched several new products, and has chalked out plans for capacity expansion and modernization so as to remain ahead of the anticipated growth in demand. In financial year 96, capacity utilization and productivity at the company‟s plants improved with the actions initiated in earlier years, In financial year 96, the company received technology inputs from Eveready battery Company Inc., USA (EBC) for improving carbon zinc battery and flashlight operations. This would help the company in improving plant efficiencies, process capabilities and in implementing the world Class maintenance program at all manufacturing location, which is an identified key thrust area for developing World Class Manufacturing competency. Flashlights Production of flashlights at the company‟s Lucknow plant was high despite labor troubles. Flashlight sales were at 9.4 million pieces for which demand continues to be strong. Carbons and metals Despite stagnant market and increased competitive activity, sales of both cinema are carbons and photoengravers‟ plates were maintained at the previous year‟s levels.
Page 1 and 2: Merger of McLeod Russell (India) lt
Page 3: traditional Tea Activities of the g
Page 7 and 8: from Rs. 364.67 crore to rs. 411.52

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