Artson Engineering Limited, (the Company) was incorporated as a Private Limited Company on 18th September 1978.
Since inception, the Company was engaged in pioneering work in developing products and systems in fuel handling and tankage construction activities in Refineries, this led the Company to become one of the foremost companies in India with specialization in Petroleum Storage and handling systems.
In the year 1990, the Company established its own manufacturing facility at Ambad (Nashik) to support its Engineering Procurement and Construction (EPC) projects.
With a consistent record of dividend payment and two bonus issues earlier, the Company came out with its Initial Public Offering (IPO) of 18,00,000 equity shares of Rs. 10 each at par in the year 1992. The IPO was over-subscribed 9.5 times and the shares of the Company were listed on the Bombay, Delhi, Madras and Ahmedabad Stock Exchanges.
By the Year 1994, the Company was already engaged in the multidisciplinary engineering activities. The Company announced its ‘Rights Issue’ in the year 1994 with ambitious expansion plans to take up EPC contracts in the core sectors of Oil and Gas, Power Generation and activities of Cryogenic Tanks Construction. The Rights Issue was of 44,85,000 equity shares of Rs. 10 each at a premium of Rs. 15 per share aggregating to Rs. 11.21 Crores.
Over the years, the Company has developed its capabilities in the multi-disciplinary construction fields for the Hydrocarbon process industry and has successfully executed, on turn-key basis, many prestigious construction contracts. The Company has thus emerged as one of the leading Design Engineering Procurement and Construction Companies in the Petroleum Storage and handling system.
During the span of three decades, the Company has successfully commissioned, on turn-key basis, several fuel storage and handling facility systems and emerged as one of the foremost companies in the country which specializes in such systems. The Company’s expertise has gradually expanded beyond the Country and has been executing prestigious overseas contracts as well.
Reference As A 'Sick Company'
As per the Audited Balance Sheet as on 30th September 2004, the Company's networth was fully eroded due to the accumulated losses. As a consequence, the Company was referred to the BIFR as a sick company under the provisions of Section 3 (1) (O) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Company's reference as a sick company was registered under Case No. 152/ 2004 with the BIFR.
At the hearing held on 17th May 2006 before the BIFR, Bank of India was appointed as the Operating Agency to examine viability of the Company and if found feasible, to formulate a rehabilitation scheme.
The Operating Agency submitted a Draft Rehabilitation Scheme on 5th June 2007 and the same was circulated to various parties for their consent.
At the hearing held on 27th November 2007, the BIFR sanctioned the Rehabilitation Scheme of the Company and the Order sanctioning the scheme of rehabilitation was received on 18th December, 2007 (Sanctioned Scheme).
Admission of TATA Projects Limited
In terms of the Sanctioned Scheme, Tata Projects Limited (TPL), has been admitted as the Strategic Investor and Co-promoter of the Company. TPL has committed financial assistance of more than Rs. 28 Crore, of which it has already infused funds aggregating to about Rs. 23 Crore.
TPL has acquired 75% stake infusing a sum of Rs.2.77 Crore towards Equity contribution. The Company has thus become a subsidiary of Tata Projects Limited.
TPL has also taken the Management Control of the Company and has inducted its representatives as Nominee Directors on the Board of the Company on 4th January, 2008.
In addition to the support in the rehabilitation of the Company as per the Sanctioned Scheme, the Company is in a position to derive benefits from TPL on many grounds including professional management, project execution intellect, quality services, TPL’s strong presence in core sectors of the economy and good governance practices.