VARDHMAN POLYTEX Share price

Vardhman Polytex Limited (VPL) (formerly known as PunjabMohta Polytex Limited) was promoted as a Joint SectorCompany by Mohta Industries Limited (MIL) and Punjab StateIndustrial Development Corporation Limited (PSIDC) and wasincorporated in the name of Punjab Mohta Polytex Limited.In 1988 Mahavir Spinning Mills Limited (MSML) took overwith approval of Board of Industrial and FinancialReconstruction (BIFR) a mini steel plant by the name ofMohta Alloys and Steel Works at Ludhiana belonging to MohtaIndustries Limited a sick Company under Section 15(1) ofSICA 1985.Mohta Industries Limited (MIL) had also promoted M/s.Punjab Mohta Polytex Limited (PMPL). Consequent to thetake over of MIL by MSML the shareholding of MIL inPMPL passed on to MSML. The shareholding of PSIDC in PMPLwas also acquired by MSML in discharge of its obligationsunder the Joint Sector Agreement entered into by MIL withPSIDC. As a result of this acquisition PMPL (sincerenamed as Vardhman Polytex Limited) became a subsidiary ofMSML with effect from June 1989.The Spinning Unit at Bathinda started commercial productionin December 1984 with an installed capacity of 9504spindles and 504 rotors. In that year the Company achievedsales of Rs 153 lacs and earned profit before depreciationinterest and tax (PBDIT) of Rs. 52 lacs. In the year1985-86 the Company was able to increase its sales to Rs.581 lacs and earned PBDIT of Rs. 93 lacs.After becoming a member Company of Vardhman Group in1988-89 the Company achieved a turnover of Rs. 1642 lacsand earned PBDIT of Rs. 410 lacs. The new managementreviewed the project and enhanced the capacity withadditions of 12060 spindles thereby increasing the capacityof the spinning unit at Bathinda to 22464 spindles. Theexpansion was completed during 1980-90. With theimplementation of the scheme the Company''s sales in theyear 1889-90 increased from Rs. 1642 lacs in 1988-89 to Rs.2154 lacs and earned PBDIT of Rs. 697 lacs in the year1989-90 as compared to Rs. 410 lacs in the year 1988-89.VPL in 1990-91 added a new Worsted Spinning Unit atLudhiana with a capacity of 4800 spindles to manufactureworsted yarn of various counts from acrylic andacrylic/wool blends. The capacity of the plant now standsincreased to 8000 spindles.The Company is presently implementing a new Spinning Unitat Baddi Distt. Nalagarh in Himachal Pradesh with a totalinstalled capacity of 39120 spindles at an estimatedproject cost of Rs.6825 lacs. The Company commissioned thisunit with partial capacity in September 1993 and tillOctober 1994 a total of 16416 spindles have been installedand commissioned and the entire scheme is expected to becompleted by June 1995.With the commencement of commercial production by the newspinning unit the sales of the Company increased to Rs.6315 lacs in 1993-94 against Rs. 5252 lacs in the year1992-93. PBDIT has also increased to Rs. 1507 lacs in1993-94 against Rs. 890 lacs in the financial year 1992-93.PRESENT BUSINESS OF THE COMPANYThe Company is presently engaged in manufacture of coarsemedium and fine counts of 100% cotton yarn 100% acrylicyarn acrylic/cotton yarn polyester/ cotton yarn and tyrecord yarns. The Company has at present three units locatedat Bathinda and Ludhiana in Punjab and at Baddi in HimachalPradesh. The unit wise details of existing manufacturingfacilities (as on 31.3.1994) of the Company are as under;------------------------------------------------------------Sl. Particulars Location Capacity ProductNo.------------------------------------------------------------1. Spinning unit Bathinda 29600 spindles Cotton and Punjab 504 Rotors blended yarns2. Worsted Ludhiana 8000 spindles Acrylic / Spinning Unit Punjab worsted yarns3. Spinning unit Baddi. H.P 9504 spindles Cotton and blended yarns------------------------------------------------------------