VST Industries Ltd Company Summary

VST Industries Ltd Summary

VST Industries Ltd (the erstwhile Vazir Sultan Tobacco Company) was incorporated in November 10th, 1930 at Hyderabad, AP. The Company is an associate undertaking of British American Tobacco Plc., the global leader in cigarettes. It has 2 manufacturing facilities in Hyderabad and Toopran and 6 Regional offices in Hyderabad, Mumbai, Delhi, Kolkata, Chennai and Guwahati. It is presently engaged in manufacture and trading of Cigarettes, containing Tobacco and Tobacco products. In 1990, the company entered the United Arab Emirates market, launching Kingston Mini Kings. To develop the export business, it introduced fire-cured, light-soil Burley and other non-traditional varieties of tobacco, followed by another brand, Kingston Dual Filter, in 1991. In the same year, it was accorded the status of an export house. It also acquired an import license for two sophisticated high-speed precision Log Max cigarette manufacturing machines from France. The company also exports agricultural products.VSTs subsidiaries are Hallmark Tobacco Company Pvt Ltd, VST Distribution, Storage & Leasing Company Pvt Ltd (VDSL) and Tobacco Diversification Investments Pvt Ltd (TDIL). During the year 2004-05 Tobacco Diversification Investments Pvt Ltd amalgamated with VST Distribution, Storage & Leasing Company, which came into effect on 1st April 2004. The company has allotted 3030000 1% Unsecured Optionally Convertible Debentures of Rs 10 each, in lieu of VSTs holding in the TDIL in the ratio of 1:1.VST introduced Gold Premium Filter in Jul.93. In 1992-93, it entered into a technical collaboration agreement with High Value Horticulture, UK. It has signed an agreement with Science and Technology Ventures, Israel. In 1994, the company incorporated VST Natural Products (formerly VST Agro Tech), to establish manufacturing facilities to process high value horticultural crops, for export. In 1994-95, the company had launched two brands - Vijay Deluxe and Charminar Standard. VST is the largest exporter of cigarettes to the Middle East from India.SEBI cleared the open offer of Brightstar Investment to acquire 20% equity stake in the company. The Open Offer made by Bright Star Investments Ltd at Rs.112 per share was revised to Rs.151 per share and the counter offer made by Russell Credit Ltd at Rs.115 per share was also revised to Rs.125 per share respectively. Both these offers were closed in during June 2001.Processing lines of the company have been modernized during the year 2003-04 by inducting Hauni KT2 Stem Cutter to improve filling values and reduce tobacco wastage and New Design spillage free Cut Stem and Cut Lamina Auto feeds to reduce tobacco wastage in the year 2004-05.It also installed a new humidification system with auto controls on Relative Humidity to improve stored cut tobacco moisture consistency and freshness.In the year 2003-04 the secondary manufacturing department has also modernized by incorporated new Auto Feed Systems on individual making machines to ensure consistency of the product in. The secondary department have been modernized by inducting two Molmac MK9 MTF (one for filter and one for micros), New weight control systems (TEWS and MRK3), IPMs (individual parcellers) and installed new quality test modules to improve and maintain consistent product quality in the converted year 2004-05.During FY 2013-14, the Company successfully converted the cigarette making and packing machines by deploying in-house expertise subject to rapid growth in the value filter 64mm segments. In continuance with its tradition, 143 workmen were trained during the year to improve their technical skills. Moreover, world-class high-speed makers and packers were inducted in the shop floor as part of the Companys upgradation plan.The Company Petition filed by the Official Liquidator in the Honble High Court of Andhra Pradesh seeking directions against some of the ExDirectors of ITC Agro Tech Finance and Investments Limited (ITCATF), the Company in liquidation, into which one of the subsidiaries of your Company, viz., VST Investments Limited was amalgamated, to file a Statement of Affairs is still pending. The manufacturing operations of the Company had to be suspended between the later part of March, 2020 and the second week of May, 2020 due to the lockdown directives issued by the State Government and were partially resumed with restricted capacity and manpower in compliance with the applicable guidelines. In FY22, the Company introduced a new variant of Kesar and Saunf flavour. Total Royal Twist was launched in 2021. During 2022-23, the Solar Power Plants of capacity 900 KW was commissioned in September 2022 for Azamabad plant and 300 KW at Toopran plant. The Company enhanced PV technology solar power plant from 1MW to 1.2MW. Total Active Mint was launched in 2022 across North Indian markets.