IDCOL

  

PRELIMINARY INFORMATION MEMORANDUM

 &

ADVERTISEMENT FOR

DISINVESTMENT OF

IDCOL ROLLING MILL LIMITED

 

 

 

THE INDUSTRIAL DEVELOPMENT CORPORATION OF ORISSA LIMITED

                                                                                                         

 

 

           

CONTENTS

 

PART – I

Advertisement

 

 

PART - II

 

Disclaimer Note

 

 

Section I : Terms and conditions

 

Section I: Introduction

 

 

1.

Background

 

Section II: IDCOL ROLLING MILL Ltd.

 

 

2.

Future process

 

1.

Background

 

 

3. Governing laws/ jurisdiction/Arbitration

 

2.

Location

 

 

Section II : General requirement & instructions

 

3.

Product and Plant Capacity

 

 

1.

Eligibility

 

4.

Infrastructure

 

 

2.

Those not eligible to qualify

 

5.

Plant & Machinery

 

 

3.

Criteria for qualifying interested parties

 

6.

Employment Position

 

 

4.

Due date, number of copies and filing requirements

 

7.

Employees Separation Scheme

 

 

5.

Disqualification

 

8.

Industrial Relations

 

 

6.

Requests for clarification

 

9.

Water Supply Arrangement

 

 

 

 

 

10.     Electricity arrangement &

         Contract Demand.

 

 

 

 

11.    Source of Raw-material

 

 

7.

Further information/ clarifications

 

12.

Marketing Arrangement

 

 

Section III : Formats

 

 

 

 

 

1.

Expression of interest

 

 

 

 

 

2.

Statement of legal capacity

 

 

 

 

 

3.

Request for Qualification

 

 

 

 

 

4.

Documents to be submitted along with EOI.

 

 

 

THE INDUSTRIAL DEVELOPMENT CORPORATION OF ORISSA LIMITED.

(A Govt. of Orissa Undertaking)

IDCOL HOUSE, Post Box No.78, Unit-2, Ashok Nagar,

Bhubaneswar-751009(Orissa) Ph.No.0674-2530112, Fax No.0674-2530518

E-mail:idcorissa@hotmail.com Website: www.idcorissa.com

 

 

INVITATION FOR EXPRESSION OF INTEREST FOR SALE OF

IDCOL ROLLING MILL LTD.

 

 

            The IDCOL (A Govt. of Orissa Undertaking) intends to disinvest 100% of its equity, in favour of a strategic investor, in IDCOL Rolling Mill Ltd. Having its production facilities at Hirakud in Sambalpur district, Orissa manufacturing Tor Steel, Round, Angle & Flat etc.

 

    Expression of interests(EoI) is being invited from prospective bidders to participate in the disinvestments process.  Interested party(ies) may obtain the detailed advertisement alongwith the preliminary Information Memorandum (“the PIM”) from the Website : www.idcorissa.com or www.orissagov.nic.in.pe/pe/htm or from Head(Tech.), IDCOL Corporate Office, IDCOL House, Unit-2, Ashok Nagar, Near Indira Gandhi Park in person on payment of Rs.5000/- in shapre of Cash/D.D. drawn in favour of Industrial Development corporation of Orissa Ltd., payable at Bhubaneswar by 18.12.2002, 15.00 hours.

 

    Documents can also be down loaded from IDCOL Website www.idcorissa.com or www.orissagov.nic.in.pe/pe/htm . In such case offers should be accompanied by D.D. of Rs.5000/-

 

            The last date of receipt of EoI is 17.00 hours on December 18, 2002.  IDCOL reserves the right to accept/reject any or all offer/s without assigning any reason thereof.  This announcement is neither a prospectus nor an offer or invitation for sale of equity shares or any securities to any institution or public.

 

 

HEAD (TECHNICAL).

 

 

 

PART - I

DISCLAIMER NOTE

The  Industrial Development Corporation of Orissa Limited (IDCOL) have invited Expression of Interest(EOI) for sale 100% shareholding in its subsidiary company, IDCOL Rolling Mill Ltd(IRML),   located at Hirakud in the District of Sambalpur, Orissa, manufacturing  Tor Steel, Round, Angle  & Flat etc.  

 This information  Memorandum (IM) has been prepared by IDCOL and may not contain all the information that an investor may desire or need. The sole purpose of this IM is to assist the prospective investors in  deciding whether  or not he /  it wish to proceed with investment proposal.  IDCOL do not accept any liability for any  loss/damage whatsoever arising from any use of this document or its contents  or otherwise  arising in connection  therewith.

This document does not constitute nor should it be interpreted as an offer or invitation for the sale or purchase of securities described therein.

No representation or warranty, expressed or implied, is or will be made as to the reliability, accuracy or the completeness of any of the information contained therin.  Any liability is accordingly expressly disclaimed by IDCOL/IRML or any of their respective officers or employees.

By acceptance of this document, the   recipient agrees that any information herein will be superseded by any later written information on the same subject made available to the recipient by or on behalf of IDCOL/IRML.

 Use of this IM is strictly for limited circulation to selected group of body corporate/ entities  and is being delivered for information purposes only and also upon the express understanding  that it will  be used by the recipient, its employees and representatives only for the purpose set forth above.

Sd/

Chairman-cum-Managing Director

 

 

 

 

 

Part-1

SECTION-I

INTRODUCTION :

 

The IDCOL Rolling Mill Limited(IRML) incorporated in March, 2002 is a wholly owned subsidiary company of the Industrial Development Corporation of Orissa Limited (IDCOL), a Govt. of Orissa Undertaking.  IRML has facilities for manufacturing Tor Steel, Round, Angle & Flat etc., with annual installed capacity of 25,000 MT.

As a part of the disinvestments  programme of the Govt. of Orissa (GoO), IDCOL intends to  disinvest 100% of its shares holding in IRML.

The Information/Particulars are given in this Preliminary Information Memorandum(PIM) to help the prospective bidders form an opinion for participating in the disinvestment process of IRML by submitting Expression of Interest(EOI) in the prescribed format as given in part-II of this PIM.

 

 

 

 

 

 

 

 

 

 

                   Part-1

SECTION – II

IDCOL ROLLING MILL  LIMITED

 

1.       BACKGROUND:

IDCOL Rolling  Mill  was set up by IDCOL at Hirakud during the year 1968 for rolling of  M.S. Billet into re-inforcement Rods, both plain round and Torsteel from 8   to 40 mm size and other structural like M.S. Angle, Flats etc.  so as to  meet the entire requirement of Torsteel of all consuming Departments of Government of Orissa.   Production in the Mill has been suspended since August’98.

During March, 2002 the unit  IDCOL Rolling Mill was converted into a wholly owned subsidiary company of IDCOL under the name IDCOL Rolling Mill Ltd.(IRML) with its registered office at Hirakud in the following address.

ADDRESS

IDCOL ROLLING MILL LTD.,

A wholly owned subsidiary company of Industrial

Development Corporation of Orissa Ltd.,

(A Govt. of Orissa undertaking)

HIRAKUD – 768 016

DIST: SAMBALPUR

(ORISSA)

2       LOCATION:

The plant is located   at Hirakud in the district of Sambalpur, Orissa at a distance of     12 kms. from  Sambalpur Railway station which is linked to Bhubaneswar, Rourkela, Vizag & Kolkata.  Hirakud is well connected to NH-6 and located at a distance of 5 kms.  The distance of some of the major places from the plant is:

 

            BHUBANESWAR               -             320 KMS.(By Road)

            ROURKELA                          -             200 KMS.(By Rail)

            PARADEEP             PORT               -             420 KMS(By Road)

            HOWRAH                               -             550 KMS (By Rail)

            KOLKATA                            -             580 KMS (By Road)

 

3       PRODUCT & PLANT CAPACITY:

M.S.ROUND              -             8 to 40 mm dia

TORSTEEL                -             8 to 40 mm dia

M.S. ANGLE UPTO             -             50 x 50 x 6 mm

M.S. FLAT UPTO             -             50 x 6 mm

SPECIFICATION             -          -IS-1786 - 1985

INSTALLED CAPACITY-             25,000 M.T. per year

LICENCED CAPACITY  -             39,700 M.T. per year

       

4       INFRASTRUCTURE:  

(a)     L A N D:                                 Lease hold land             -             82.31 Acres.

Lease Term                         -             99 years.

(b)   COLONY:

The Colony has all the amenities like First Aid Centre, School (upto – M.E. Standard), Club, Consumer Co-operative Store and Credit Society, temple and School-Bus facilities. Details of quarters available in the Colony are as follows:

 

 

 

Details of Quarters.

Numbers

 

GM’S Bunglow

1

 

Three Room Quarter(`C’ type 3R)

6

 

Big Two rooms(`D’ type 2R)

18

 

Small Two Rooms(2SR)

64

 

Two Room Flat(2RB)

24

 

Two Room A.C. Sheet (`F’ type-2R)

7

 

One Room AC Sheet (Old `D’ type)

12

 

(c)FACTORY AND OTHER BUILDINGS:

 

(i)       FACTORY BUILDING.  

  

Particulars

Area

Type of Construction

 

Main Factory Building

7515 Sqm.

A.C. Sheet with M.S.Truss

 

The Factory Building is also having over-head crane facilities of One-5 M.T. capacity and another 10 M.T. capacity.  It has also a platform-weighing-machine of 30M.T. capacity.

 

   (ii) NON-FACTORY BUILDING:

 

     Particulars
Area
Type of Construction

 

a) Control Room

2367 Sft.

R.C.C.

b) Administrative-Cum-Technical

    Building.

374 Sqm.           333.75Sqm.                        

R.C.C.                        A.C.Sheet

c) Workshop & Weigh Bridge

230.83 Sqm.

A.C. Sheet & M.S. Truss

d) Latrines & Bath Rooms

155.00 Sqft.

R.C.C.

e) Pump House & Filter House

1352.00 sqft.

A.C.Sheet/M.S. Truss

f) Cycle Stand

75.00 Sqm.

A.C.Sheet/M.S.Truss.

g) Co-operative Store & Club

2548.00 Sqft.

A.C.Sheet & Wooden Truss

h) Oil Godown

1184 Sqft.

A.C.Sheet & Wooden Truss

i) Raw-material Room

83.05 Sqft.

A.C.Sheet & Wooden Truss

j) Shade for twisting Machine(Garrage)

2488.00Sqft.

A.C.Sheet & Wooden Truss

k)New  Club Building

    and Auditorium

960.00 Sqft. 4031.00Sqft.

R.C.C.                       A.C.Sheet/M.S.Truss.

l) Laboratory Building

1900.00 Sqft.

R.C.C.

m)New Canteen Building

400.00 Sqft.

R.C.C.

n) Security Office

565.00 Sqft.

A.C.Sheet/M.S.Truss.

o) Boundary Wall

1411.5 Rmt.

Brick Wall`B’height average

p) Auto Exchange Room

80.00 Sqft.

R.C.C.

q) Ramp for Motor Vehicle

100.00Sqm.

Cement Concret

r) New Co-operative Store

112.00 Sqmt.

A.C. Sheet/M.S. Truss.

5.  PLANT & MACHINERY                       -             List as per Annexure –I.

 

6. EMPLOYMENT POSITION:

(i)  Permanent:             -

 

Executive :

Technical 

Non-Technical

1

1

 

Supervisor:

Non - Technical

5

 

 

 

Clerical :

 

3

 

Workers :

Semi-skilled

4

 

 

Unskilled

18

 

               TOTAL

:

32

 

             

(ii) Contract workers   

 

3

(iii)Security Guard

     (on contract basis)

 

11

 

 

7.             EMPLOYEE  SEPARATION SCHEME :

Voluntary Retirement Scheme(VRS) has been introduced from time to time for allowing employees to avail VR benefits.  In the process, already 91 employees have availed VR.  The recent VR Scheme expires on 20th November, 2002.

8.             INDUSTRIAL RELATIONS :

There has been no incidents of strike/lock out etc. in the Company.  The industrial relation is cordial.

9.  WATER SUPPLY ARRANGEMENT :

Water requirement is being met from the Hirakud Dam Reservoir on Mahanadi River     and due to the perennial nature of Mahanandi River continuous supply  of water to the  Mill is assured.

  10.   ELECTRICITY ARRANGEMENT  AND CONTRACT DEMAND:

  (a)ELECTRICITY ARRANGEMENT

Supply by WESCO from 66 KV GRID Sub-Station, Hirakud  through 11 kv. Incoming feeder.

(b) CONTRACT DEMAND:

Contract Demand – 950 KVA (Plant)

                             -  345 KVA (Colony)

  11.   SOURCE OF RAW-MATERIAL: 

The Mill is intended to produce Torsteel out of 65 mm x 85 mm M.S. Billet.  Since the above size Billets are not easily available and inview of its high prices, the Mill is using 75mmx100mm M.S. Pencil Ingots and 100x100mm Concast Billet whose prices are reasonable. 

12. . MARKETING  ARRANGEMENT:

  Products of the mill are marketed in the State of Orissa.  The major buyers are, Govt. Departments, State based Corporations, Semi Govt. Departments, Central Govt. Projects and other projects. Open market sale has also been introduced for catering to the needs of individual consumers. 

 


Annexure - I

PLANT & MACHINERIES
Year of Installation

FURNACE:- 2 Nos. Oil Fired Re-heating Furnaces                                               1968

 (a)                     Re-heating oil fired furnace with pusher facility, (steel

Plant, Bombay make).

Pusher Capacity                                               -             15 MT

Furnace  Capacity                                               -