RAMA PETROCHEMICALS LTD.

Rama Petrochemicals (RPCL), the leading entity of the Rama group, was established in 1985 with the aim of executing the 60,000-tpa methanol project in Patalganga, Maharashtra. Founded by the Ramsinghani family, the company entered into a technical collaboration with Lurgi, Germany, for the methanol plant, which commenced production in 1988. Holding a 28.84% stake, the collaborator remains an integral part of the company. Noteworthy consumers of RPCL include Bombay Dyeing, Cibatul India, Hindustan Organics, among others. In 1993, RPCL diversified into construction, currently developing a commercial complex in CBD, Belapur. Additionally, Rama Capital and Fiscal Services, a subsidiary of RPCL since 1995-96, was established to oversee financial operations. RPCL's gelatine project (1750 tpa) in Lalru, Patiala district, Punjab, and denim project (10 mln mtr pa) in Jakhwada, Viramgaon district, Gujarat, are progressing well, with production set to commence in the latter half of 1997. The company plans to access the capital market to partially fund these ventures. RPCL intends to merge Rama Fertilisers Pvt Ltd, engaged in SSP and GSSP manufacturing in Junagadh, during 1996-97. Furthermore, the company has obtained court approval for the separation of its denim division with Rainbow Denim (RDL). However, due to substantial losses incurred and the subsequent erosion of net worth in 2000-01, RPCL has been classified as a sick industrial company under SICA 1985, and is preparing to approach the BIFR. The BIFR has granted final approval for the merger of Rama Fertilizers Pvt Ltd with RPCL. Consequently, RPCL has discontinued methanol manufacturing and shifted its focus to trading activities as its primary business operation.