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The Morarjee Goculdas Spinning & Weaving Company Limited (MorajeeMills or the Company) was incorporated on 10th August 1871 as a Public Company under Act No.10 of 1866 of The Legislative Council of India. It is one of the largest composite textile mills in India and also one of the oldest stocks listed on the BSE.The Company was incorporated with the object inter alia of acquiring from Morajee Gocuklas and certain property with building and machinery of a textile mill. The Company was managed upto 1934 by the family of Shri Narottam Morarjee & others.During 1934 the Management of the Company changed hands and the Piramal family acquired control of the Company. With the discontinuance of the of the managing agency Shri GopikishanPiramal and Dr. Mohanlal Piramal were appointed as the Company''sfirst Managing Directors. Later in 1975 Shri Ashok G. Piramalbecame Managing Director of the Company along with Shri Gopikishan Piramal.Mr. Ajay Piramal became the Chairman and Managing Director of the Company in 1984 and in January 1987 Mrs Urvi Piramal was appointed as the Joint Managing Director. In 1980 the Company acquired a second composite textile unit (a loss unit of Sayaji Mills Ltd) at Lower Parel Bombay. The Piramals in 1978 acquired S.S.Miranda Ltd. a company engaged in the manufacture of cutting tools. This was followed in 1981 by the acquisition of PMP Auto Industries Ltd. a company manufacturing Auto electrical components. These two were merged with Morarjee Mills in 1990. With a view to acquiring a base in Southern India a loss making cotton textile mill Davangere Cotton Mills Ltd was acquired and merged into Morarjee Mills in 1991 . The unit of Sayaji Mills as well as Davangere Cotton Mills Limited which were making losses when acquired have beenturned around in a very short span of time after takeover and ason date are continuing to the bottom line of the company.PRESENT BUSINESS OF THE COMPANYThe Company has three DivisionsTEXTILE DIVISION:Morarjee Mills is one of the largest composite textile mills in India. The turnover of the Textile Division accounts for about 87% of the total turnover. In 1991 the Company acquired Davangere Cotton Mills a sick unit under BIFR. It has been delisted by BIFR because of consistent improved performance since takeover by present management. The Company now operates from 4 plants i.e. 2 in Bombay & 2 in Karnataka with a total of 186 188 spindles and 2406 looms. The Company has one of the largest capacities which has been built at a low cost over the years. Multiple locations of plants unlike most of itscompetitors give Morarjee a strategic proximity to the marketsas well as flexibility in production.Its product range includes saris dress materials fabric for shirts and furnishings. In the domestic market the Company is slowly moving away from low-value grey fabric products towards higher value-added products and has also identified certain niche areas like ladies fashion wear. A range of Salwar Kameez "Hazel" has been recently introduced and well received in the market. this activity is expected to grow further with the setting up of franchise operations throughout the country. I line with its forward integration plans the Company has entered in a strategic alliance with the Wakefield Shirt Company Ltd. of U.K. in July 1994 for manufacturing of "Double Two" brand ofapparel in India.AUTO ANCILLARY DIVISION (PMP AUTO):PMP Auto is engaged in the manufacturing and marketing of Auto Electrical Components and its product range includes Alternators Distributors Switches Wiper Motors etc. The Division''s customers include leading Automobile Manufacturers such as Maruti Mahindra Nissan TELCO Premier etc. The division has two manufacturing facilities one at Bombay and the other at Satara both in Maharashtra.The division has tied up a technical collaboration with Fico Transpar SA of Spain in February 1993 to manufacture windshield wipers. Initially the division plans to sell the entire output of wipers to Maruti. The Auto Ancillary Division has an ISO 9000 certification and was the first Auto Electrical manufacturing Company in India to get the same. TOOLS DIVISION (MIRANDA):Miranda Tools division makes high speed steel cutting tools like tool bits end mills drills hacksaws and bandsaws at its plants located at Bombay and at Ankleshwar Gujarat. Its customers include large engineering firms like Bharat Heavy Electricals Hindustan Machine Tools and Larsen & Tourbo. Miranda Tools'' operations are heavily dependent on imported steel (which accounts for roughly 80% of costs) the duties on which were reduced from 85% to 50% starting March 1 1994 which would help improving the profitability of the division. During 1993-94 the division has entered into an agencyagreement with M/s TESA of Switzerland who are part of Brown and Sharpe group renowned name in the Precision tools industry. In terms of the agreement Morarjee will be the sole agents of M/s TESA in India for marketing high precision tools/ instruments.