The Company was incorporated as Modern Threads (India)Limited (MTIL) a Public Limited Company on 28th August1980 and commenced its operations in January 1982 at itsplant located at Raila District Bhilwara Rajasthan toproduce industrial yarn and sewing thread. It has sincediversified into manufacture of synthetic blende grey yeand fancy yarns. The Company has an installed capacity of23888 spindles including 5760 spindles of a 100% EOUproject installed in July 1992 with the state of artmachinery including Autoconers and TFOs. The 100% EOU ofthe Threads Division was also awarded ISO 9002 Certificatefor manufacture & supply of Polyster Viscose and Blenaed Yarnby Bureau of Indian Standards vide certificate bearing LicenceNo. QSC/L 000337 dated 21.1.94. The Fancy Yarns produced bythe Company enjoy excellent demand and premium in domesticas well as international market.The Company had acquired Woollens Division of Modern Woollens Ltd.(MWL) from 1-4-1994. The said Woollens Division of MWL issituated at Bhilwara Rajasthan which was established duringthe year 1976 has the largest capacity to manufacture Woollen CarpetYarn in the Country. Further the Woollens Division of MWLhas now become one of the leading Manufacturer-Exporter ofWorsted Yarn. The Woollens Division has a pioneering statusas an exporter of Woollen Carpet Yarn and has receivedCertiticate of Merit from the ''Wool & Woollens ExportPromotion Council'' of the Government of India for differentproducts for three continuous years from 1991 to 1993.For synergy of operations and also to reduce costs as wellas to integrate the activities of textile industry it wasconsidered prudent by both the Companies to vest theWoollen Yarn Division of MWL in MTIL amongst others forthe following reasons:a) MWL had two divisions namely the Woollen Yarn Divisionand a 100% EOU Terry Towel Division. For its 100% EOUthere were proposals from foreign buyers to participate inthe financial and technical collaboration provided theCompany''s activities are confined to Terry Towelmanufacturing activities. The Foreign collaboration isexpected to give a big boost to the growth of thisactivity.b) The Terry Towel Division of MWL is located at Ahmedabadand the Woollen Yarn Division is located at Bhilwara. MTILis also located at Bhilwara which is engaged inter-alia inthe manufacture of synthetic yarns. Both the manufacturingfacilities i.e. the Woollen Yarn Division of MWL and theSynthetic Yarn Division of MTIL having somewhat a commoncustomer base and somewhat similarity of operations and ifcombined under a common umbrella would result in anefficient management and coordination synergy inoperations greater competitive strengths and othereconomic benefits and therefore it would be advantageousif the Woollen Yarn Division of MWL is vested into MTIL.c) MTIL on the strength of this enlarged integratedactivities and asset base can plan for substantialexpansion by forward/backward integration which has alwaysbeen the focus of the Modern Group and would also be inline with the Government Policy of rapid industrialisation.d) MTIL will also stand to gain substantially as it willbecome a large integrated Company.e) New investments in the Terry Towel Project of MWL wouldrequire loans and other modes of funding for which expertshave suggested that its actitivities should be consolidatedin a single thrust export Company.The Company has entered into a scheme under Section 391 to394 of the Companies Act 1956 with Modern Woollens Ltd(MWL) and Suneel Textile Mills Ltd (STML) for transfer ofSTML and the Woollens Division of MWL to MTIL. As per theScheme of Arrangement approved by the Rajasthan High Courtvide its order dated October 21 1994 all the propertyrights claims and actions and powers of STML and of MWL inthe Woollens Division is vested in MTIL with retrospectiveeffect from 1st April1994. As a result of this MTIL willnow have the business of STML and the Woollens Division ofMWL in addition to its existing business.The valuation of Woollens Division is based on thevaluation report prepared by M/s. S.S.Kothari & Co.Chartered Accountants which has been taken intoconsideration by various concerned authorities includingRajasthan High Court. Against the total consideration ofRs. 65.31 Crores of "Woollens Division" as valued theCompany has acquired Assets & liabilities of WoollenDivision comprising of Fixed -Assets valued at Rs.67.94Crores Current Assets of Rs. 63.11 Crores andSecured/Unsecured Loans & Current Liabilities of Rs.47.28Crores. Accordingly an amount of Rs.18.46 Crores isconsidered as Reconstruction Reserve.In consideration of the transfer:(i) Members of the MWL will be issued and allotted 11.19Equity Shares of Rs.10/-each at a premium of Rs.25/- pershare in MTIL for every 100 shares of Rs. 10/-each held bysuch members in MWL.(ii) MWL will be issued and allotted 139.95 lacs EquityShares of Rs.10/-each at a premium of Rs. 25/- per share inMTIL.(iii) Members of STML will be issued and allotted 37.28Equity Shares of Rs.10/- each at a premium of Rs.25/- pershare in MTIL for every 100 shares of Rs.10/- each held bysuch members in STML.The turnover & profitability of MTIL is expected to showmarked improvement during the year ended March 1995 andthereafter in view of the transfer of woollens division ofMWL in MTIL. As against the sales income of Rs.74.53 Croresof MTIL during the year ended March 1994 the projectedsales income of MTIL during the year ended March 1995 isRs.163.25 Crores. Similarly as against Net Profit ofRs.4.04 Crores for the year ended March 1994 theprojected Net Profit for the year ended March 1995 isRs. 18.51 Crores.
Name | Position |
---|---|
Mr. Rajesh Ranka | Chairman & Managing Director |
Mr. Ram Awatar Kabra | Executive Director |
Mrs. Veena Jain | Non Exe.Non Ind.Director |
Mr. J N Sharma | Ind. Non-Executive Director |
Mrs. Ankita Jain | Ind. Non-Executive Director |