Rain Industries Ltd
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BSE Code:
500339
NSE Code:
RAIN
Business Profile
Business Profile
Rain Commodities (RAIN) is primarily engaged in the manufacture and sale of cement. It was incorporated on March 15, 1974 and got its present name on Dec. 27, 2004.
Rain Industries, Rain Commodities (USA) Inc., Rain Commodities (Canada) Inc., and Rain CII Carbon LLC, USA (Rain CII), are subsidiaries of the company. Rain Industries produces ordinary portland and blended cements with two locations in Andhra Pradesh at Nalgonda and Kurnool with a combined capacity of 1.6 million MTPA. It currently markets the cement production in South India under the brand name Priya Cement. Rain Commodities (USA) Inc. is a special purpose vehicle that explores strategic business opportunities across the globe, particularly in the developed markets of USA and Europe. Rain CII Carbon LLC, USA is currently the largest manufacturer of calcined petroleum coke in the world with a total capacity of 2.5 million MTPA.
In a major transaction, Rain Commodities (USA) Inc. acquired 100% membership interests of AIP/GLC Holdings LLC from American Industrial Capital Partners II LP. A feasibility study was launched by Rain CII early in 2008 to construct, own and operate a petroleum coke calcining plant in China. The planned capacity for the new facility is between 300,000 and 500,000 MTPA, expecting to commence production early in 2010. In a major restructuring exercise, the cement business of Rain Industries was transferred to the company, and the calcined petroleum coke and power business was transferred from the company to Rain Industries.
The registered office is located at Plot No 34 Rain Center, Srinagar Colony, Hyderabad-500073, Andhra Pradesh.
Financials
Rain Commodities registered a profit of Rs 701.4 million for the six months ended September 2007.
It recorded a net sales of Rs 2,791.1 million for the six months ended September 2007.
Total income was Rs 2,811.4 million for the six months ended September 2007.
The earnings per share (EPS) of the company stood at Rs 10.37 for the six months ended September 2007.
Recent Developments
12-MAR-08
Rain Commodities announced that Focus India Brands has acquired 4.97% of the company`s share capital. The board of directors of the company at its meeting held on Mar. 11, 2008, allotted 3.5 million equity shares to Focus India Brands (Promoter) at a price of Rs 200 each, consequent to the conversion of 3.5 million equity warrants into equity shares.
22-FEB-08
Rain CII Carbon LLC, USA (Rain CII), a wholly owned subsidiary company, has launched a feasibility study to construct, own and operate a petroleum coke calcining plant in China. The planned capacity for the new facility is between 300,000 and 500,000 MTPA, with startup in early calendar 2010. The proposed facility will be located in Eastern China in close vicinity to major oil refineries and port facilities. The location adds raw material sourcing and finished product distribution synergies to their global calcining operations. Rain CII is adopting a strategy focused on adding new facilities to increase capacity and reducing distribution costs for end consumers. With a total capacity of 2.5 million MTPA, Rain CII is currently the largest calciner entity in the world. In 2007, Rain CII produced roughly 2.2 million MT of calcined petroleum coke.
04-JAN-08
Consequent to the amalgamation of Rain Calcining with the company, the board of directors of the company at their meeting held on Jan. 4, 2008 has allotted 34,861,286 equity shares of Rs.10 each fully paid-up to the shareholders of Rain Calcining (transferor company) in the ratio of 2:7, i.e., two equity shares of the company were allotted for every seven equity shares held in Rain Calcining as on Jan. 2, 2008 (record date). Post allotment of new shares, the total issued and paid-up equity share capital of the company will be Rs.669,712,860 divided into 66,971,286 equity shares of Rs.10 each.
26-NOV-07
On Nov. 23, 2007, the board of directors took on record the order dated Oct. 25, 2007 of the high court of Andhra Pradesh, approving the scheme of arrangement consisting the transfer of cement business from Rain Industries to the company with effect from July 1, 2006. It also approved the amalgamation of Rain Calcining with the company with effect from April 1, 2007 and transfer of Calcined Petroleum Coke (CPC) and power business from the company to Rain Industries with effect from April 1, 2007.
The certified true copy of the court order has been filed with the registrar of companies on Nov. 23, 2007.
Accordingly, the scheme of arrangement has become effective from Nov. 23, 2007 and Rain Calcining stands amalgamated with the company, the cement business has been transferred from Rain Industries (wholly owned subsidiary company) to the company; and Calcined Petroleum Coke (CPC) and power business has been transferred from the company to Rain Industries.