V-Guard Industries Ltd

V-Guard Industries Limited based in Kochi, Kerala is a multi-product company catering to the mass consumption market. The Company is engaged in manufacturing, trading and selling of a wide range of Electronics, Electrical and Consumer Durables. Its manufacturing facilities are located at Coimbatore, Tamil Nadu; at Kashipur and Roorkee, Uttarakhand; at Kala Amb, Himachal Pradesh; at SIPCOT Industrial Growth Center, Perundurai, Tamil Nadu and at Majitar, Rangpo and Mamring in Sikkim. The Company has a strong nationwide distribution network of 32 branches, 624 distributors, more than 50,000 channel partners. The foundation of V-Guard Industries was laid with the formation of a partnership concern viz. Priemere Electronics by Mr. Kochouseph Chittilappilly in the year 1977 which was engaged in the business of manufacturing and marketing voltage stabilizers under the brand name 'V-Guard'. In the year 1992, Premier Electronics, the partnership concern was dissolved and Chittilappilly continued the business as a proprietary concern. In the year, 1985, Chittilappilly started another proprietorship concern by the name of M/s Prompt India for marketing of the products under the brand name of V-Guard. Subsequently, M/s Prompt India changed its name to M/s V-Guard Industries. On 12 February 1996, V-Guard Industries Limited was incorporated under the Companies Act, 1956. With effect from 1 April 1996, V-Guard Industries took over the business of the proprietary concern i.e. M/s V-Guard Industries on going concern basis for a lump sum consideration of Rs.234 lakhs and carried on the business of the firm namely manufacturing and marketing of electronic and electro mechanical appliances. In 1996, the company launched electric water heaters. In 1998, the company launched UPS (Online & Offline). In 1999, the company launched digital stabilizers. During the year under review, the company's cable manufacturing unit was inaugurated at Coimbatore. In 2001, the company launched compressor pumps. With effect from 15 November 2001, V-Guard Industries was converted into a private limited company. In 2002, the company launched solar water heaters. In 2006, the company launched fans under the V-Guard brand. The company got converted into a public limited company on 1 August 2007 and received a fresh certificate of incorporation in the name of 'V-Guard Industries Limited'. In 2008, the company entered in capital market with IPO of 80,00,000 of equity shares of Rs.10 each. On 20 June 2012, V-Guard has launched Enviro, a hi-speed pedestal fan, which uses the Magneto Motive Drive (MMD) Technology. Unlike other pedestal fans, Enviro consumes only 55 watts electricity. V-Guard Industries' new plant for manufacture of solar water heaters at the SIPCOT Industrial Complex at Perundurai in Tamil Nadu became operational on 25 September 2013. The unit will have a capacity to produce 90,000 units of solar water heaters annually. On 14 May 2014, V-Guard Industries Ltd. in line with its long-term growth strategy for the Northern Indian market announced the opening of its third branch office in U.P at Panditpur, PO Jagatpur in Varanasi. On 9 December 2015, V-Guard Industries informed the stock exchanges that in order to meet the growing demand of stabilizers in non-South markets, the company has set up a manufacturing unit of Voltage Stabilizers in the State of Sikkim. The unit is eligible for benefits under North East Industrial & Investment Promotion Policy (NEIIPP), 2007 which also covers the state of Sikkim. V-Guard is also exploring inorganic expansion opportunities in companies, with product range having synergy with V-Guard, and manufacturing capabilities. A consultant has been appointed to assist the company in identifying and evaluating potential opportunities. The Board of Directors of V-Guard Industries at its meeting held on 16 June 2016 considered and approved the proposal for splitting of one equity share of face value of Rs.10/- each into ten equity shares of face value of Re. 1/- each. The Board of Directors of V-Guard Industries at its meeting held on 26 July 2016 considered the proposal of commencement of operations of the in-house PVC compounding unit at Chavadi, Coimbatore as part of backward integration and the unit is expected to commence commercial production by end of August 2016. The Board of Directors of V-Guard Industries at its meeting held on 30 January 2017 recommended the issue of bonus shares by way of capitalization of reserves in the ratio of 2:5 (two shares for every five shares held). The Board of Directors of V-Guard Industries at its meeting held on 28 March 2017 accorded in-principle approval to make majority investment in equity of GUTS Electro-Mech Ltd., Hyderabad, a company which is engaged in the manufacture and marketing of various kinds of domestic switch gears and current transformers. GUTS reached a turnover of about Rs 30 crore in FY 2015-16. GUTS has its manufacturing facilities in Hyderabad and Haridwar. On 31 August 2017, V-Guard Industries announced that the company has acquired additional 7.82 lakh equity shares of Rs 10 each of Guts Electro-Mech Limited, Hyderabad, vide share purchase and subscription agreement dated 31 August 2017. The total shareholding of the company in Guts Electro-Mech Limited, including the acquisition of shares made vide share purchase agreement dated 21 August 2017 is 14.54 lakh shares and the same constitutes 74% of the paid-up share capital of Guts Electro-Mech Limited. In January '21, the Company acquired minority stake in Gegadyne Energy Labs Pvt Ltd. (GEL) for a consideration of Rs. 33.4 crores constituting 18.77% of total shareholding. During FY21, the Company launched several new products such as water purifiers, breakfast appliances, kitchen hobs and chimneys through online channels. During the year 2021-22, the Board of Directors has approved Scheme of Amalgamation amongst the Company, SEPL (Transferor Company) and their respective Shareholders and Creditors in compliance with provisions of the Companies Act, 2013 to merge the Simon's Indian business with the business of the Company upon effecting the Scheme of Amalgamation. In December '21, the Company acquired Simon Electric Private Limited (SEPL) from SIMON, SA. During 2021-22, it launched BLDC fans. During the year 2021-22, the Company formed V-Guard Consumer Products Limited (VCPL), as Wholly Owned Subsidiary, for increasing in-house manufacturing capacity. It set up its first manufacturing facility for production of Stabilizer and Digital UPS in Pantnagar, Uttarakhand, and commercialized the unit in March, 2022. In 2022-23, the merger of Simon Electric Private Ltd. (SEPL/ Transferor Company) with V-Guard Industries Ltd. (Transferee Company) through the Scheme of Amalgamation was made effective from April 28, 2023. Pursuant to said Scheme of Amalgamation, 10,83,008 Equity Shares were allotted having Face Value of Re 1 each to the Shareholders of SEPL in the share swap ratio of 0.0076646:1. In 2022-23, the Company acquired 100% shareholding of Guts ElectroMech Ltd. making it a wholly-owned subsidiary. Similarly, the Company acquired 100% shareholding of Sunflame Enterprises Private Limited and accordingly, Sunflame Enterprises became a wholly-owned subsidiary of the Company effective on January 12, 2023.