BANSWARA SYNTEX Share price

The Company was initially promoted by Shri R.L.Toshniwal andRajasthan State Industrial Development & Investment CorporationLimited (RIICO) in joint sector. The company was incorporatedon 5.5.1976 as a Public Limited Company for manufacture ofsynthetic blended yarn. It received certificate of commencementof business on 27th September 1976. Later on it was convertedinto Private Sector. RIICO originally subscribed to 469293shares each of Rs.10/-. In terms of the buy-back agreementshares dis-invested by RIICO has been bought back by thepromoters their friends and relatives at price ranging fromRs.12/- to Rs.57/- per share. The company is now working asprivate sector undertaking. At present RIICO is holding only12000 shares of the Company.The Company started its operations in April 1978 with 12500spindles at Banswara (Rajasthan) which is a backward area. Itgenerated cash surplus in very first year of its operation.Expansion and modernisation programme has been undertaken fromtime to time. Balancing equipments were also 9installed.Barring year 1981-82 to 1983-84 on account of power cut in theState of Rajasthan working of the Company remainedsatisfactory. The Company''s performance has considerablyimproved in the year1987-88 onwards. Performance during theyear1993-94 has been excellent. The turnover of the Company hasincreased substantially during 1993-94 to Rs.9453 lacs from 9100lacs(for fifteen months) of previous year recording a annualisedgrowth of30%. The company in fact is one of the market leadersinfancy spun yarn.The company is already in export market for last five years.Export of yarn and fabric during the year 1993-94 has been tothe tune of Rs.16.16 crores compared to Rs.10.98 crores (15months) of previous year showing an annualised increase of 84%.The Company has been recognised as Export House by Ministry ofCommerce for its export achievements. The Company hasestablished a good overseas market of yarn and fabric. In orderto increase value added exports which will ultimately improveprofitability of the company a new weaving unit in the name andstyle of Toshco International has already been set up wherein 24Air Jet looms are working.The Company is undertaking expansion and modernisationprogrammes in phased manner. Before the commencement of thisIIIrd phase of expansion project the company has alreadycompleted 1st phase in which 2880 spindles are installed. InIInd phase company has installed 2880 spindles and 21 Air Jetlooms taking total installed capacity of the company beforecommencement of this phase to 40260 spindles and 45 Air Jetlooms with total outlay of 1175 Lacs. These two phases werefunded by term loans of Rs.610 lacs from IDBI Rs.200 lacs byUTI and balance from internal accruals.