POLYCHEM LTD.

Established in 1955, Polychem's product line spans polystyrene, styrene monomer, industrial alcohol, VAM, acetic acid, PVA, and a diverse array of alcoholic beverages including whisky, vodka, and brandy. Notable brands under the company's umbrella include Royal Secret, Alcazar, and Beehive. To fuel expansion initiatives such as the alcohol distillery, VAM plant, and PVA plant, as well as to address working capital requirements (estimated at Rs 32 crore), Polychem issued zero-interest FCDs in November 1992. Additionally, Polychem entered into agreements with International Distillers and Vintners (IDV), UK, to manufacture and distribute their brands in India, and formed a strategic partnership with Dow Chemical Company, US, to market specialty grade polystyrene in the Indian market. Collaborating with AVX, US, Polychem also co-founded Gujarat Poly-AVX Electronics, aimed at producing leaded and chip multi-layer ceramic capacitors. Subsequently, in the fiscal year 1999-2000, the company, burdened by accumulated losses, sought recourse under the provisions of the Sick Industrial Companies (Special Provisions) Act (SICA), leading to its reference to the Board for Industrial and Financial Reconstruction (BIFR), with IDBI appointed as its operating agency.