L G Balakrishnan & Bros Ltd

L.G. Balakrishnan Bros Limited (LGB) was established in 1937 as a transport Company and has evolved today as major manufacturer of chains, sprockets and metal formed parts for automotive applications. The Company is presently promoted by B. Vijayakumar. Its business segments include transmission and metal forming. Its transmission products include chains, sprockets, tensioners, belts and brake shoe. It offers metal forming products consisting of fine blanking for precision sheet metal parts, machined components and wire drawing products for internal use as well as for other chain manufacturing plants, spring steel suppliers and umbrella manufacturers. The Companys products are marketed under the Rolon brand. It has manufacturing units spread across Tamil Nadu, Pondicherry, Maharashtra, Uttarakhand, Karnataka, Haryana and Rajasthan.The Company has installed 22 number of windmills with a total rated capacity of 7.16 MW. The total number of units of energy generated from these windmills was around 96.58 lakhs units which were used for captive consumption. Further, it installed Roof Top Solar system at one of Coimbatore plant with capacity of 1.45 MW and Gudalur plant with capacity of 0.8 MW Jalna plant with capacity of 0.83 MW and 3 number of ON GRID ground mounted solar power plants for a rated capacity of 100 KW each. Total installedrated capacity of solar system is 3.37 MW. The number of units generated through this solar system was around 42.29 lakhs units which were used for captive consumption.The company made a rights issue in July, 1994 in 1:2 ratio and a bonus issue in the ratio of 1:3 was made in November, 1994. The company received ISO 9001 Certification from Det Norske Veritas Germany, in 199394.The company has five chain manufacturing plants, all ISO 9001 certified by Underwriters Laboratories Inc., USA. Three of the manufacturing facilities along with the central functions have been registered to ISO/TS 16949 by UL, USA.utomotive and industrial chains under the popular brand name ROLON. The company is the first chain manufacturer in India to be awarded the ISO 9001 Certification.The company installed a 1.125 MW wind energy farm comprising five wind mills in 199495 During 199798 the company took over the operations of Steel Division of M/s Elgi Automotive Services Ltd based at Karur and Wire flattening division of M/s L.G.B. Auto Products located at Karur. Effective from 1st April 1997, M/s LGB Industries was amalgamated with the companyApten forgings pvt ltd, a Bangalore bsed company became subsidiary with effect from 03.07.2003.During 20042005, by virtue of scheme of amalgamation approved by, the shareholders at the Extraordinary Meeting held on 0703.2005 and the High Court of Judicature Madras vide its order no.3406/05 dated 25042005, the companies wholly owned subsidiary company Apten Forgings Ltd merged with the company.The company also acquired the operations of M/s MGM Industries and Swathe Gears and Heat Treaters, Mysore based frims with effect from 01062004. The acquired divisions are engaged in manufacture of hot forging components.The company acquired shares in LGB Textiles and subsequently the company became wholly owned subsidiary of the company.The company has set up a new facility for manufacture of cold forgings at K. Palayam during the period 20042005The company has disposed of , whole or substantially the whole of the undertaking of Textile Division, Motor Sales Service Divisions, Bus Body Division, Motor Sports Division, Engineering Division, Power Tools Division, Distribution Division of Mico, Blaupunkt, Elf products and Precured Retreading operation during the year 20042005 with the consent of the shareholders obtained in the AGM held on 28072004.During 20052006, A Letter of Offer for subscription in equity shares of Rs.10/ each at a premium of Rs.25/ aggregating an amount not exceeding Rs.10 crores is received from LGB Textiles Ltd. The Directors of the company explained the the companies inability to subscribe to the offer at present owing to the proposed expansion programmes ahead. Hence it is proposed to renounce the rights in favour of any willing investors at the best possible premium, if any, for such renuncation.The Company set up a new manufacturing plant in Pantnagar, Uttarakhand State in 2007. During the year 2007, the Company madePreferential Allotment of 55,32,714 Equity Shares of Re.1 / each to International Finance Corporation, Washington (IFC) a Subsidiary ofWorld Bank. It disposed the investment held in their erstwhile wholly owned subsidiary namely LGB Textiles Limited through Share Purchase Agreement for a consideration of Rs. 19.92 Crores which resulted a profit of Rs.9.20 Crores to the Company.During the year 2008, the Forging Divisions of the Company was demerged into separate Company namely, LGB Forge Limited w.e.f. April 01, 2008, the Appointed Date. Honble High Courts of Madras had sanctioned the Scheme vide their Orders dated April 21, 2008. During year 2009, Company incorporated a joint venture Company namely Renold Chain India Private Limited under Shareholders Agreement entered into with Renold Pic, a United Kingdombased Company. M/s. BCW V Tech India Private Limited became a wholly owned subsidiary of the Company in which it held 100% of the Equity Shares as on 31st March, 2012. The Companys Foreign subsidiary LGB USA. INC, USA acquired 100% stake in GFM Corporation USA, which specializes in manufacturing of Precision Metal Stampings.The Honble National Company Law Tribunal, Chennai Bench (NCLT) vide its order dated July 13, 2018 sanctioned the Scheme of Amalgamation of M/s. BCW V Tech India Private Limited with M/s. L.G. Balakrishnnan Bros Limited (Tranferee Company) with effect from the Appointed date, April 1, 2017. The said order of the Scheme filed with the Registrar of Companies, Coimbatore came into effect on July 27, 2018.