NITIN SPINNERS Share price

OUR HISTORY & BACKGROUNDOur Company was incorporated as a private limited Company on 15th October 1992 under the Companies Act 1956 in the state of Rajasthan having the name "Nitin Spinners Private Limited". Subsequently our Company was converted into a public limited company on 15th November 1994 and the name was changed to Nitin Spinners Limited. The individual Promoters of our Company are Mr. R. L. Nolkha Mr. Dinesh Nolkha and Mr. Nitin Nolakha.Our Company is presently engaged in the manufacturing of cotton yarn and knitted fabrics. We have grown by undertaking expansions at regular intervals to reach at our present capacity of 27216 spindles 1872 Rotors and 15 knitting machines. We have installed Plant & Machineries imported from known textile machinery manufacturers like Rieter (Switzerland) Savio (Italy) Mayer & Cie (Germany) Elitex (Czechoslovakia). We have also installed Plant & Machineries purchased locally from manufacturers like Laxmi Machine Works.Our first unit was set-up in the year 1993 at Hamirgarh Bhilwara(Rajasthan) for manufacturing coarse cotton yarns. We installed two open-end spinning machines with 192 Rotors each aggregating 384 Rotors which were acquired from Elitex Czechoslovakia under EPCG scheme. The total capital outlay towards the project was Rs. 285.50 Lacs which was financed by way of a Term Loan of Rs. 150 Lacs from RIICO Equity Share Capital of Rs. 86 Lacs from Promoters Unsecured Loans of Rs. 14.50 Lacs from Promoters and State Subsidy of Rs. 35 Lacs. The commercial production of this project was commenced inNovember 1993.Subsequently in the year 1994 we undertook our first expansion project involving installation of one Autoconer Machine of 216 Rotors from Schlafhorst AG & Co. Germany and increased the number of Rotors to 600 . The total capital outlay towards this project was Rs. 400 Lacs which was financed by Rupee Term Loan of Rs. 84 Lacs and Foreign Currency Loan of DM 905000 equivalent to Rs.185 Lacs from ICICI Equity Share Capital of Rs. 20 Lacs and Rs. 56 Lacs from RIICO and Promoters respectively and Internal Accruals of Rs. 55 Lacs. The commercial production of this expansion project was commenced in May 1995. We undertook our second expansion project in the year 1996-97. The expansion project involved acquisition of two Autoconer open-end spinning machines of 240 Rotors each from Schlafhorst AG & Co. Germany increasing our capacity to 1080 Rotors. The total capital outlay towards this project was Rs.1100 Lacs which was financed by Foreign Currency Loanof DM 1350000 equivalent to about Rs.324 Lacs & Rupee Term Loan of Rs. 336 Lacs from IDBI Equity Share Capital of Rs. 200 Lacs from Promoters and Internal Accruals of Rs. 240 Lacs. The project was implemented ahead of schedule and commenced commercial production from 05th October 1997 as against the expected schedule of January 1998.We undertook our third expansion in the year 1998-99. The expansion scheme involved two open end spinning machines of 384 Rotors from Elitex Czechoslovakia. The total capital outlay of the project was Rs.190 Lacs which was financed by way of Term Loan of Rs.140 Lacs from RIICO and Rs. 50 Lacs from Internal Accruals. The expansion was carried out mainly for balancing of excess capacity available at preparatory stage. The machines wereinstalled in September 1998.Based on growth in export performance our Company was converted into 100% Export Oriented Unit (EOU) from 15th January 1999. We have been awarded export house status by Government of India in the year 1999.We undertook our fourth expansion project in the year 1999. This expansion project involved installation of 14112 spindles to produce combed and carded cotton yarns of 20s to 40s count. At this expansion phase we also went for forward integration programme by installing 7 knitting machines. The total capital outlay of the project was Rs. 5018 Lacs. The project was financed by way of Rupee Term Loan of Rs.3601 Lacs from the following banks: IDBI - Rs.1665 Lacs IOB - Rs.775 Lacs OBC - Rs. 608 Lacs and PNB - Rs.553 Lacs; EquityShare Capital of Rs.850 Lacs from Promoters Unsecured Loan of Rs.50 Lacsfrom Promoters and Internal Accruals of Rs. 517 Lacs. The entire project was financed under Technology Upgradation Funds Scheme (TUFS) of Government of India. The commercial production of this expansion project was commenced on 1st April 2002. In order to augment long-term working capital requirement of our Company arising due to this expansion project IDBI sanctioned financial assistance of Rs.150 Lacs by way of subscription to 150000 13.5% Cumulative Redeemable Preference Shares of Rs.100 each which was subsequentlyreduced to 10.25% on 1st June 2004.We undertook our fifth expansion project in the year 2003. The total capital outlay of this project was Rs. 3550 Lacs. This expansion project envisaged addition of 13104 spindles and 6 knitting machines. The project was financed by way of Equity Share Capital of Rs. 700 Lacs from Promoters; Internal Accruals of Rs. 400 Lacs and Term Loan from IDBI OBC PNB and IOB aggregating Rs. 600 Lacs Rs. 400 Lacs Rs. 750 Lacs and Rs. 700 Lacs respectively. This project which was expected to be completed by September 2005 wasactually completed before time in November 2004.We undertook our sixth expansion project in February 2005. This expansion project involved addition of 408 Rotors and 2 knitting machines. The capital outlay of this project was Rs.250 Lacs which was financed from internal accrual.Thus within span of 12 years we have increased our production facilities from 384 Rotors in year 1993 to present production facilities of 27216 spindles 1872 Rotors and 15 knitting machines.Our products are suitable for applications such as apparels undergarments Terry Towels Denims Medical Fabrics Furnishing Fabrics and Industrial Fabrics. Our products are presently sold in the domestic market as well as exported to various countries like Australia Bahrain China Colombia Egypt Israel Italy Korea Mauritius Russia Poland U.K. U.S.A. etc. Some of our major international customers are Arad Towels and SVAV-OR Ltd. (Israel) EDPA (USA) Gobind & Co. and City Styles (LEIC) Ltd. (UK) Emi-Maglia S.p.a. (Italy) Hong Kong Shanghai Knit Factory Ltd. (Mauritius) Zheing Feng Weaving Factory (China) OOO Transexport (Russia) Sharda Europe SP. ZO.O (Poland) MT Sullivan and Co. (Australia).Our major Indian customers includes Arvind Mills Adani Exports Ltd. Modern Denim Ltd. Maral Overseas Ltd. Ginni International Ltd. Vanasthali Tex. Ind. Ltd. Datt Mediproducts Ltd. Sheena Textiles Ltd. Lahoti Overseas Ltd. and L. M. Sagar Exports.Our MilestonesYear Event 1992 Incorporated as a private limited company1993 Commenced operations with Open End Spinning - 384 Rotors1994 Becomes a public limited company1995 Completed First Expansion and enters Automated Open End Spinning Total Installed Rotors - 600 nos.1997 Completed Second Expansion; Total Installed Rotors - 1080 nos.1998 Completed third expansion * Accredited as ISO 9002 Company * Total Installed Rotors - 1464 nos.1999 * Achieved 100% EOU Status * Government Recognized Export House2002 Entered into Ring Spinning Forward integration into knitted fabrics Completed fourth expansion * Total Installed Rotors - 1464 nos. * Total Installed Spindles - 14112 nos. * Total Installed Knitting Machines - 7 nos.2004 Completed fifth expansion * Total Installed Rotors - 1464 nos. * Total Installed Spindles - 27216 nos. * Total Installed Knitting Machines - 13 nos. Accredited ISO:9001 status2005 Completed sixth expansion * Total Installed Rotors - 1872 nos. * Total Installed Spindles - 27216 nos. * Total Installed Knitting Machines - 15 nos.