Delhi Cloth & General Mills
| Industry | Basic materials and technology |
|---|---|
| Founded | 1889 |
Delhi Cloth & General Mills (aka Delhi Cloth Mills or DCM) is an Indian company founded in 1889 by Rai Bahadur Ram Kishen Das Gurwale.[1] Initially a textiles mill, the company later expanded into many industries and became a large Indian conglomerate. However, in the 1980s, as a result of legal and financial challenges the company was forced to split into several industry segments.
History
The company was founded in 1889 by Rai Bahadur Ram Kishen Das Gurwale[1] and its first factory, located in Delhi, took two years to build.[2] The company prospered through 1907 and in 1909 Sir Shri Ram joined the company as an assistant to his father during a period of decline.[2] Under Ram's guidance the company regained a prosperous pace.[2] The company went through a significant financial crisis in 1917 but recovered after it received a large contract from the British Army at the time of the First World War.[3] The mill was engaged primarily in the cotton and sugar trades and became one of the top mills in northern India.[3] The company opened a second cloth mill and two sugar mills in 1925.[2] It launched DCM Chemical Works in 1941 and Daurala Distillery in 1942.[2] In 1946 it began manufacturing vanaspati.[2]
Over time the company expanded and had many subsidiaries including Usha International, Bengal Potteries, Jay Engineering Works and Shri Ram Fertilizers.[3] In 1964 the Chairman of the Board of Directors, Bharat Ram, addressed the 76th annual meeting of shareholders.[4]
In the 1980s the company name was changed to DCM Ltd and it successfully defended a hostile takeover by a UK-based investor.[1] As the eventual result of the failed takeover, DCM was split into four distinct companies in 1990.[1] The four companies were: DCM, DCM Shriram Industries, Shriram Industrial Enterprises and DCM Shriram Consolidated.[1] In 1999 there was further splintering of the company into two additional parts.[1]
In 1995, DCM's 1983 partnership with Toyota Motors came to an end. DCM then entered a partnership with the Korean automotive company, Daewoo Motors, which ended in 2001 after Daewoo Motors went bankrupt.[1] During the latter 1990s Delhi Cloth & General Mills had a series of financial defaults and lawsuits.[1] The company's 116 year old manufacturing facility was torn down to make new commercial and residential buildings.[2] The razing was the result of a 1989 Supreme Court decision which drove factories out of the city of Delhi.[2]
References
- ^ a b c d e f g h Mitra, Kushan (June 28, 2011). "DCM has survived splits and a hostile takeover bid". Business Today. Retrieved Oct 12, 2015.
- ^ a b c d e f g h Pande, Bhanu (Sep 10, 2005). "Mills & Boom". India Times. Retrieved Oct 23, 2015.
- ^ a b c Kothari, Ajay Kumar. Great Lives. pp. Chapter: Sir Shri Ram.
- ^ Ram, Bharat (Nov 28, 1964). "Delhi Cloth & General Mills Co., Ltd. Speech of the Chairman, Dr Bharat Ram". Economic Weekly.
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