Sheel International Limited was founded in 1992 with the aim of manufacturing dairy products such as Butter, Pure Ghee, Milk Powder, Skim Milk, and Liquid Milk. The Government of India, as part of its various programs to promote the well-being of children, youth, and the elderly, as well as to encourage dairy production, provided emphasis. The company's products received a positive market response due to the expertise of its management, who had significant experience in the dairy industry.
However, despite this initial success, challenges arose. Overcapacity in the Buland Shahar District and difficulties in procuring raw milk at high prices from entities like Mother Dairy and Amul for liquid milk supply in Delhi led to a surplus of milk for processing. This surplus, coupled with escalating costs, rendered operations financially unfeasible. Consequently, the management made the difficult decision to cease activities in November 1998 and applied to the Board for Industrial and Financial Reconstruction (BIFR) to be designated as a distressed company under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.
Despite this application, the BIFR/AAIFR declined to declare the company as distressed and dismissed its petition.
However, despite this initial success, challenges arose. Overcapacity in the Buland Shahar District and difficulties in procuring raw milk at high prices from entities like Mother Dairy and Amul for liquid milk supply in Delhi led to a surplus of milk for processing. This surplus, coupled with escalating costs, rendered operations financially unfeasible. Consequently, the management made the difficult decision to cease activities in November 1998 and applied to the Board for Industrial and Financial Reconstruction (BIFR) to be designated as a distressed company under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.
Despite this application, the BIFR/AAIFR declined to declare the company as distressed and dismissed its petition.
