SAMBANDAM SPINNING MILLS Share price

Sambandam Spinning Mills Limited was incorporated as a privatelimited Company on 7th Nov. 1973 under The Companies Act 1956.The word "Private" was deleted under the provisions of Section43A (2) of the Act with effect from 1st July 1989 when itbecame a deemed public limited company. The Company became fullfledged Public Company with effect from 17th June 1994.The Company has two units situated at Salem and Ayeepalayam.The Unit at Salem (Unit I) was started in 1974 and is now havinga spindleage of 25220 spindles. The Unit commenced commercialproduction in May 1974 with an installed capacity of 3300spindles. The spindleage was gradually expanded in stages to15000 between the years 1974 and 1980. The expansion wasfinanced by way of Term Loans from Financial Institutions tothe tune of Rs.39 lakhs Deferred Payment Guarantees ofRs.257.24 Lakhs from Tamilnadu Industrial Investment Corporation(TIIC) and State Bank of India (SBI). Further expansionprogrammes were undertaken between 1980 and 1988 to increase thespindleage from 15000 to 25220. The capacity increase wasfinanced by way of term loans from SIPCOT and also internalaccruals. The second unit at Ayeepalayam Athanur in Salem District (UnitII) was started in 1990 with an installed capacity of 5760spindles at a cost of Rs.335 Lakhs. The capacity was expandedto 12480 spindles in 1993 at a cost of Rs.565 Lakhs. Both theabove projects were financed by way of term loans from IFCI andalso internal accruals. At present the Company has a combined aggregate installedCapacity of 37700 Spindles. The Company has a sound track record of productivity andprofitability and has been producing high quality yarn for thedomestic market. The Company has also been regular inmodernising its unit and at present almost all the machines atits existing Units are fully modernised. The Company''s productrange includes cotton carded and combed yarn in the count rangefrom 20s to 100s. The company''s products are well received inthe local and international markets.l