.rm77 GUJARAT REFRACTORIES LTD. OBJECTS & ACTIVITIES: Manufacture of high alumina refractories insulating bricks,mortars,ramming mass,etc. PROMOTION: The Company was promoted by R.K.Ghandhi and M.R.Gandhi. OPERATION: The plant which was commissioned in December 1987 went into commercial production by March 1988. During 1988-89 (9 months), production and sales amounted to 933.19 tonnes and Rs.5.37 lakhs respectively. During 1989-90,though production and sales improved to 1,557.47 tonnes and Rs.13.95 lakhs respectively,margins were under pressure due to steep increas in the cost of raw materials,power and fuel,interestr and undser utilised plant capacity. During 1990-91,turnover though increased by 56% to rs. 21.70 lakhs the company continued to incur loss. With a view to rationalising the existing manufacturing facilities, the company laid mphasis on the procurement of raw materials at a competitive rate, updating laboratory instruments and strengthening quality control. Also effective steps were taken to optimise production and run the Alumina plant at its installed capacity. EXPANSION PROGRAMME: In the 2nd phase of its development, the company was setting up production facilities for the manufacture of insulating and magnesite refractories with an annual capacity of 8,000 tonnes and 4,000 tonnes respectively. Additional land asmeasuring 9.19 acres. Orders were placed in the domestic market for plant and equipment. A 62 KVA generator was installed to meet contingency power requirements. The implementation of the programme was to commenced by April 1989 and the plants were expected to be stream by December 1990. During 1989-90 in order to increase the utilisation of alumina capacity and put thrust in that area, the second phase expansion programme was slowed down. RIGHTS ISSUE: During 1991-92, the Company issued 8,29,320 equity shares at par on rights basis to the shareholders of the Company in the proportion of 2:5. Additional 57,788 equity shares were allotted to retain oversubscription. COST OF THE PROJECT: The estimated cost of the II phase,viz.,the insulating and magnesite refractories project was Rs.276 lakhs of which a sum of Rs.49.67 lakhs was for buildings Rs.143.57 lakhs for plant and machinery and Rs.35 lakhs for margin money for working capital. It was met by equity capital of Rs.26 lakhs by promoters and Rs.124 lakhs by public issue and Rs.125 lakhs by a term loan from Bank of India.