MDA MAY-JUNE 2019 MDA May-June 2019 | Page 23

GHM edia B usiness |Article| The company’s vision is to become one of the world’s leading cable manufacturers by utilizing state-of-the-art manufacturing facilities and best- in-class resource pool. Limited, a wholly owned subsidiary of CMI Limited. This plant is a state of the art manufacturing Green certified facility in India and is the only silver certified green project in India to manufacture cables. This facility was designed and built in compliant with Indian Green Building Council standard which reduces their overall impact on the environment. The plant is spread over a land area of 20 acres with a possibility of further expansion within the same premises whenever required. At present this plant has the capacity to manufacture cables and wires up to tune of Rs. 1000 Crores, which is almost three times as of Faridabad plant. With the best of efforts put in by the management this Baddi plant was made operational again within the six months of its acquisition in September, 2016. For a better working of both the companies a merger between the two Companies was planned. The proposed amalgamation enables pooling of physical, financial and human resource of these Companies for the most beneficial utilization of these factors in the combined entity. As a result , the Board of Directors of the Company, at its meeting held on May 21, 2018, considered and approved a scheme of amalgamation (“Scheme”) pursuant to sections 230 to 232 and other relevant provisions of the Companies Act, 2013, providing for the merger of its wholly owned subsidiary, CMI Energy India Private Limited (“Transferor Company”) with CMI Limited (“Transferee Company) which was further approved by shareholders at the Extra- Ordinary General Meeting held on July 28, 2018. The Scheme was subject to necessary statutory and regulatory approvals under applicable laws, including approval of the National Company Law Tribunal in India. The Hon’ble National Company Law Tribunal (NCLT), vide its Order dated April 03, 2019, approved the Scheme of Amalgamation. The Amalgamation now will result in usual economies of a centralized and a large company including elimination of duplicate work, reduction in overheads, better and 23 | may-june 2019 Global MDA Journal more productive utilization of human and other resource and enhancement of overall business efficiency. It will enable these Companies to combine their managerial and operating strength, to build a wider capital and financial base and to promote and secure overall growth of their businesses. The said Scheme will contribute in fulfilling and furthering the objects of these Companies. It will strengthen, consolidate and stabilize the business of these Companies and will facilitate further expansion and growth of their business. The resulting amalgamated company will be able to participate more vigorously and profitably in the competitive market scenario. Commenting on the order received for Amalgamation, Amit Jain, Chairman and Managing Director, CMI Limited said, “Really happy with the judgment, it will enable these Companies to combine their managerial and operating strength, to build a wider capital and financial base and to promote and secure overall growth of their businesses.” With a pledge to follow ethical business practices and be honest in all business dealings Companies mission is to achieve sustainable growth by delivering high- quality, innovative products that meet new, undefined or existing market needs in unique ways. The Company is sure of achieving this by fostering innovation which helps it to stay ahead in the competition, provide meaningful differentiation and gain increased recognition in the wires and cables industry. The company’s vision is to become one of the world’s leading cable manufacturers by utilizing state-of-the-art manufacturing facilities and best-in-class resource pool. The Company aims to be the first choice amongst significant players in the specialty cable manufacturing industry by delivering products which exceed customers’ expectations. The company’s priority is to maximize shareholders value through product development, improved efficiency and open culture within the Company. www.cmilimited.com Global MDA Journal