Rama Petrochemicals Ltd.

Rama Petro Chemicals was incorporated in the year 1985. It is engaged in the business of methanol, construction and fertilizers. Indo-Us Investment holds more than 20% equity in the company. Its plant are located at Patalganga, Dist. Raigad, Maharashtra and in Dungarpur, Junagadh, Gujarat. But due to the rising international prices of naphtha, the oil gas company is not operating its methanol plant since 1999.

The company has a subsidiary namely, Rama Capital and Fiscal Services.

Milestones:

1985

• The Company was incorporated on 28th January, at Mumbai.  It manufactures methanol.  It was promoted by the Rama Group of Companies.
• The Company entered into a Licence Agreement with Lurgi GmbH of West Germany and Osterreichsche Hiag-Werke GmbH of Austria, whereby the Company was granted a licence to operate the methanol plant based on the latest low pressure technology of Lurgi GmbH. Lurgi GmbH also would be deputing their technicians for commissioning the methanol plant.
• The Company entered into a comprehensive agreement dated 16th October, with Humphreys and Glasgow Consultants Pvt. Ltd. (HGCL) for provision of technical consultancy services required for the methanol project.
• Approval from Government was received for enhancement of the licensed capacity of methanol from 50,000 to 1,00,000 tonnes per annum. 

1987

• The Company initiated discussions with alternative suppliers of technology for selection of a cost effective technology package. 

1989

• The Company obtained a letter of intent for the manufacture of 15,000 TPA of 2- Ethyl Hexanol and certain by-products.
• Another letter of intent was received for the manufacture of 30,000 TPA of formaldehyde at the existing location at Patalganga. Steps were taken for selection of appropriate technology for the manufacture of the said product. 

1990

• It was decided to defer the 2 ethyl hexnol project since a satisfactory agreement could not be concluded with the technical collaborators for the project. In view of certain anticipated changes in the industrial policy, it was decided to review the proposed formaldehyde project. 

1992

• During October, necessary approvals were received to issue 31,20,720--15% fully convertible debentures of Rs 100 each on Rights basis in the proportion 3 debs: 10 equity shares held. 

1995

• During the year prices of Methanol decreased globally coupled with reduced customs duty which led to cheap import of Methanol had affected the performance of the Company. 

1996

• Sales turnover declined to Rs. 50.31 crores due to lock-out of the factory for 28 days.  

1998

• The poor performance as attributed to closure of the methanol plant for nearly 10 months due to a lock out declared by the company. 
• The company contemplated reorganization of its business with a view to greater focus and attention on the product groups and improve its working results. With this in view, the company proposed to transfer the Denim division to Rainbow Denim Ltd.
• The company submitted a rehabilitation scheme to BIFR for the merger of Rama Fertilisers Pvt. with the company.
• Rama Capital & Fiscal Services Ltd. is a subsidiary of the company. 

2003

• Shareholders approved delisting from Ahmedabad Stock Exchange and Delhi Stock Exchange.

Business areas of the company:

Rama Petrochemicals engages in the manufacture of methanol. It also engages in construction business, as well as trades in chemical goods, such as granular sulphur and sulphuric acid. The company is based in Mumbai, India.

Subsidiary:

Rama Capital & Fiscal Services