SRM Energy Limited (‘SRM or the Company’) was incorporated as a Public Limited Company on September 3, 1985 under the name of Hitkari Fibres Limited (‘HFL’). The Company consisted of a 5.0 tpd plant located at Birwadi, Maharashtra for manufacturing non-woven fabrics, mostly automotive moulded car carpets and blankets. Its Initial Public Offer (IPO) was launched in September 1988.
In 1996, Maruti Udyog Limited, the leading passenger car manufacturer in India, entered into a contract with HFL for sourcing manufacturing moulded automotive carpets for its leading car models; ‘Zen’ and ‘Esteem’. To meet this contractual obligation, HFL decided to acquire additional machinery which was completed in December 2002 and commercial production of moulded automotive carpets started in January 2003. Subsequently, General Motors, Tata Motors Ltd, Fiat, Hyundai Motor India Ltd, Mahindra & Mahindra, Hindustan Motors, Toyota Motor Company and other automotive manufacturers also approached HFL for sourcing moulded automotive car carpets for their various models. HFL was considered the leading supplier of moulded carpets and auto trim fabrics in automotive industry.
However, over the years, HFL’s business volumes fluctuated due to lack of working capital and reduction in margins, resulting in financial losses. Accordingly, the Company then decided to foray into the business of power and energy generation and hived off its fibre division to Hitkari Hitech Fibres Private Limited (‘HHFPL’). SRM Energy Private Limited was promoted as an SPV by the Spice Energy Group to develop and implement power projects. In December 2008, HFL merged with SRM Energy Private Limited and was renamed SRM Energy Limited with effect from January 19, 2009.
The Spice Energy Group, through Spice Energy Private Limited, have taken over management control of the Company from the Hitkari family, the original promoters of the Company, during March 2008 with Spice Energy Private Limited being defined as the new promoter of the Company.