In 1987 the Company's second foundry unit for manufacture of the same product range was established at Bhilai in Madhya Pradesh and with further increase in product demand the third unit was established at Anjora Rajandgaon in Madhya Pradesh in October 1991.

The company's principal customers are the construction industry and the Indian Railways. It also exports Cast Iron Castings for construction and Municipal requirements to Middle East and Japan averaging about 2000 MT per annum.

The Company is the recipient of the Export Excellence Award from the Engineering Export Promotion Council in recognition of achieving highest export performance amongst the SSI exporters in the panel Cast Iron Pipes Fittings and other Sanitary Castings for the year 1992-93.

With a view to diversify its activity the company decided to set up a Solvent Extraction Plant with a crushing capacity of 500 TPD and refining capacity of 100 TPD. The company was offered a newly erected Solvent Extraction Plant having a crushing capacity of 200 TPD and refining capacity of 25 TPD which had begun its trial runs. Thisplant was erected by NAFPL promoted by Mr. S H Agarwal & others who were already in the business of trading in soyabean oilseeds & food grains. The Company then decided to take up the Plant and enhance its crushing capacity from 200 TPD to 500 TPD and refining capacity from 25 TPD to 100 TPD.

In the process of acquisition the entire shares of NAFPL were first acquired by the Promoters & Associates of NECO whereby it became a group Company; and further the entire Assets and Liabilities were purchased by NECO out of the Internal Accruals at book value. To effect the transfer of the Immovable Property i.e. Land Building Plant and Machinery etc. a Sale Deed dated March 27 1993 was executed by NAFPL in favour of NECO. The details of the Assets and Liabilities taken over are as follows: (Rs.in lacs)

Assets

Land and site development 2.87Factory shed & buildings 117.51Plant & Machinery Misc. Fixed Assets and other deposits 295.35

415.73

Liabilities

Term Loan From SICOM 145.00From MSFC 75.85

220.85

Net Consideration paid 194.88

The necessary registration/licences are also obtained by the Company from the concerned authorities.

After the acquisition the Company commenced commercial production immediately and simultaneously started the expansion programme. During 1993-94 the crushing capacity was increased to 300 TPD which is being further increased to 500 TPD and refining capacity is being increased to 100 TPD.

AMALGAMATION:

The Shareholders of the Company at their Meeting held on 28th February 1997 approved the Scheme of Amalgamation of Nagpur Alloy Castings Limited along with Jayaswals Neco Limited into the Company w.e.f. appointed date i.e. 1st April 1996.