History of The Company

Thai Carbon Black Public Co.,Ltd. was set up in 1978 as a Joint Venture
between the Birla Group of India and local Thai Investors to manufacture
Carbon Black, an important raw material for automobile tyre rubber
industry. The company was established with initial registered capital of
Baht 500,000 and increased during the past years for the expansion of
capacity to the present level of Baht 300,000,000.

In the last 5 (five) years, the company has increased its production
capacity as follows :

1. Capacity before year 1996 100,000 MT

2. Expansion in year 1996 40,000 MT

Total 140,000 MT per year

During the past 5 (five) years the company has not increased its share
capital which is Bath 300 million.

In the year 1993, the company received ISO 9002 certificate. In the year
1997 the company received another prestigeous quality certification ISO
14001. During the year 1999 the company received very prestigeous
quality certification QS 9000 which is required by major US automobile
manufacturers from 1^(st) tier suppliers but the company has gone one
step ahead and achieved the certification as 2^(nd) tier supplier for
automobile industry. Similarly, the company was recently rated at level
7, one of the highest 10^(th) level of International Quality Rating
System of Det Norske Veritas of Norway which provides structured quality
process and a road map for company’s journey towards “Total Quality
Management” which company is pursuing vigourously.

The company meet important requirement of major tyre companies for
Carbon Black. In addition, the company also export over 60% of Carbon
Black production to several countries.

Our company does not have any holding company.

Business Operation of the Company, Subsidiary and Associated Companies

Thai Carbon Black Public Company Limited has one subsidiary, namely Thai
Sulphites and Chemicals Ltd. We hold 60% of the shares of this company.
Thai Sulphites and Chemicals Co., Ltd. manufactures Sodium Sulphite and
Sodium Metabisulphite. The business of our company does not have any
direct or indirect relation with the business of our subsidiary company.

Further, the company has investment in other two companies as its
associated companies, namely Thai Organic Chemicals Co., Ltd., a
manufacturer of Epichlorohydrine and Caustic Soda and P.T. Indo Liberty
Textiles, a manufacturer of Synthetic Yarn.

The revenue structure of the group in the past three years is as follow
:

Million Baht

+-----------------+----------------+----------+-------+-------+-------+
| Products        | Operated By    | % of     | 2000  | 1999  | 1998  |
|                 |                |          |       |       |       |
|                 |                | Share    | A     | A     | A     |
|                 |                | holdings | mount | mount | mount |
+-----------------+----------------+----------+-------+-------+-------+
| Carbon Black    | Thai Carbon    | 100      | 2,655 | 2,407 | 2,583 |
|                 | Black Plc.     |          |       |       |       |
+-----------------+----------------+----------+-------+-------+-------+
| Sodium          | Thai Sulphite  | 60       | 360   | 367   | 380   |
| Sulphites and   | & Chemicals    |          |       |       |       |
| Sodium Meta     | Co.,Ltd.       |          |       |       |       |
| Bisulphites     |                |          |       |       |       |
+-----------------+----------------+----------+-------+-------+-------+
| Synthetic Yarn  | P.T. Indo      | 40       | *20   | *17   | *21   |
|                 | Liberty        |          | 6,061 | 3,858 | 0,716 |
|                 | Textiles       |          |       |       |       |
+-----------------+----------------+----------+-------+-------+-------+
| E               | Thai Organic   | 49       | 767   | 467   | 109   |
| pichlorohydrine | Chemicals      |          |       |       |       |
| & Caustic Soda  | Co.,Ltd.       |          |       |       |       |
+-----------------+----------------+----------+-------+-------+-------+

* Million Indonesia Rupiah