Welspun Specialty Solutions Ltd

Welspun Specialty Solutions Ltd. (Formerly known as RMG Alloy Steel Limited) was incorporated on December 29, 1980. The Company was promoted by V C Saraf and R C Saraf along with the Remi Group and the Doshi Group of Kenya, together with the Gujarat Industrial Investment Corporation (GIDC) and Essar Gujarat. The Company is a multiproduct manufacturer of Alloy Steel, Billet, Bloom, Ingot, Rolled Bar, Bright Bar and Seamless Pipes Tubes. The company came out with a Rs 38cr public issue in Feb.94, to partfinance its proposed project, at a project cost of Rs 220 cr. RMGL is in the field of steel. Its products include seamless pipes, steel, etc. The major clients of RMGL are ONGC, Oil India, the bearings industry, etc. Its plant is located in Bharuch, Gujarat. RMGL is establishing a seamless pipes/tubes plant to manufacture 70,000 tpa of carbonalloy steel seamless pipes/tubes in technical collaboration with Intertech Internationale Techniscle Assistenz, Germany. The company has also set up inhouse steel manufacturing and rolling capacity of 1,00,000 tpa. The steelmaking capacity has been increased from 25 tonnes to 35 tonnes per charge. Seamless pipes with total backward integration of the steelmaking facility and rolling mill commenced trial production and commenced its commercial production in Oct97. Later on, the Steel Plant and Rolling Mill commenced normal operations from January, 2004. However, the Pipe Plant operations normalized in July 2004.The Company was declared sick by BIFR and IDBI was appointed as Operating Agency. In the year 2005, pursuant to the Order of the Board for Industrial Financial Reconstruction (BIFR) dated 18th October 2002, the Company allotted 3,67,75,000 Equity Shares of Rs 6/ each fully paid on preferential basis to some of the promoters of the Company against the Share Application Money Received.