Modi Rubber Ltd

Incorporated in February 1971, Modi Rubber (MRL), a B K Modi Group Company, manufactures automobile tyres. It has entered into a technical collaboration with the German tyre major, Continental Aktiengesellschaft, to manufacture steel radial tyres for trucks. The company has a state-of-the-art plant at Modipuram, which is one of the most modern tyre manufacturing plants in Asia. The Company was earlier engaged in manufacture of automotive tyres, tubes, flaps and other allied products in its plants set-up in 1974 at Modipuram, Meerut and Modinagar. Pursuant to the BIFR Scheme, Modinagar Plant was with the Company for carrying out its industrial activities. However, Modinagar Plant of the Company was under the Seal of Official Liquidator (OL) attached to the Allahabad High Court appointed by Allahabad High Court in 'Punjab National Bank Vs Modi Export Processors Ltd,' as the Company had taken Industrial Shed and land on perpetual lease from Modi Export Processors Ltd, on which Company installed its Plant & Machinery for Modinagar Plant. The Company filed Special Appeal with Allahabad High Court for re-possession from the OL which was pending for final adjudication before the Hon'ble High Court. Further, the Company implemented provisions of BIFR Scheme. MRL exports to countries like Vietnam, the Philippines, Singapore, the US, the UK, Bangladesh, Afghanistan, Syria, Sri Lanka and the Latin American countries. However exports to Pakistan and Afganistan received a set back due to political condition and a stiff competition from China. The company has set up the facilities for manufacture of automobile tubes at Partapur, UP. The company expansion plans for manufacture of radial tyres for passenger cars and light commercial vehicles with latest technology from collaborator has been very supportive. The company has been successful in launching new range of Truck & LCV tyres as well as premium tractor tyres which are finding better acceptance in the market. It has introduced a number of new tyres for super heavy and heavy load areas, under the brand name Multilife 2000 and Marathon 2000. The company is planning to tap normal load areas like South India and part of West Zone in India with upgraded technology tyres, to further increase its market share in these regions. In a move that would aid the existing promoters of the company in coming up with an open offer for buying out the 44% stake of the financial institutions in the company, the promoters have spoken to various NRI investors to bring in investments to the tune of $8-10 million, the open offer by purchasing a maximum of 52.58 lakh shares representing 21% of the company's paid up equity. The proposal is awaiting a final approval from the Industry Minister. During 2008-09, Board for Industrial & Financial Reconstruction (BIFR) sanctioned a Rehabilitation Scheme for the revival of the Company on April 21, 2008. Pursuant to Rehabilitation Scheme, the business operations of Modipuram and Partapur Plants were vested in M/s Modi Tyres Company Pvt. Ltd. (MTCPL) a wholly owned subsidiary of MRL from March 31, 2008. As a result, Modipuram and Partapur Plants commenced their commercial production since 2009. Modi Tyre Factory (MTF)-Modinagar Plant which manufactures tyres other than Truck & Buses was set up by the Company and accordingly, was taken from Modi Export Processors Ltd.( MEPL). MEPL was under liquidation and an Official Liquidator (OL) was appointed by an Order of the Allahabad High Court. The Central Government vide dated 25 November 2016 put into force the provisions of the Sick Industrial Company (Special Provisions) Repeal Act 2003 repealing SICA 1985. However, the Repeal Act shall not affect any order made by the BIFR for sanctioned Scheme. In compliance of direction issued by BIFR, your company continue to implement the unimplemented provisions of sanctioned scheme by the BIFR on 8.4.2008. In this respect, industrial rehabilitation for Modinagar Tyre Factory (MTF) could not be achieved as yet. The matter for possession of MTF Plant is pending with Hon'ble Allahabad High Court. The OL appointed by the Allahabad High Court in Modi Export Processors Limited's (MEPL) winding up proceedings has put his seal on MTF Plant. Company has taken a legal recourse for re-possession of MTF Plant. Litigation with one creditor is also pending who have till date not accepted the dues as per scheme sanctioned by the BIFR. Company has been following up with Govt agencies/authorities/department/Creditors to provide relief and concessions and to accept settlement as per scheme sanctioned by the BIFR. Company still could not take back possession of its Modinagar plant from the Official Liquidator (OL) appointed by the Allahabad High Court in the case of MEPL from which your Company has taken industrial shed and Land on perpetual lease on which Modinagar Plant was set-up. Company have taken new initiatives to improve its long term prospects and performance and in order to make best use of its real estate resources your company has put Guest House Facility at Modipuram for commercial use after obtaining requisite approvals from the concerned Authorities. Your company is also taking several steps to utilize its real estate resources