SUNIL INDUSTRIES Share price

The present Sunil Industries Limited was initiallyincorporated as a private limited company on 19/11/1976 in thestate of Maharashtra as Raj Ratan Textile Processors PrivateLimited and was earlier a partnership firm set up in 1969. Themanagement of the company was taken over by Mr. Vinod Lath in1979 from the then Directors Mr. J.S.Jadhav Mr. M.N. Rane andMr. S.K.Ovhal. The Company''s name was changed to Sunil DyeingPrivate Limited on 22/4/1982 and a fresh certificate ofincorporation was obtained from the Registrar of CompaniesBombay on 27/5/1982. The Company was converted into a PublicLimited Company in terms of a special resolution passed on1/4/1991 and a fresh certificate of incorporation was obtainedon 16/5/1991 in the name of Sunil Dyeing Limited from theRegistrar of Companies Bombay. The Company''s name wassubsequently changed to Sunil Industries Limited and a freshcertificate of incorporation was obtained on 30/3/1994. Theregistered office of the company is located at D/8 M.I.D.C.Phase II Manpada Road Dombivli (East) Thane DistrictMaharashtra.Raj Ratan Textile Processors was a partnership firm set up in1969 by Mr. J.S.Jadhav Mr. M.N.Rane and Mr. S.K.Ovhal. Thisfirm did not do any business till 1974 though it had acquiredland from the MIDC. From 1974 manual processing of grey cloth(basically bleaching) was undertaken and the company had anapprox. capacity of 40 lakh metres of cloth and an approx.turnover of about Rs. 20-25 lakhs. In 1979 Mr. Vinod Lathtook over the company (the firm had been converted to a Pvt.Ltd. Co. in 1976). In 1981-82 the company developed dyeingfacilities also and by 1983 the building was expanded andprinting facilities were developed. In 1984 the companyswitched over to power processing and the installed capacityincreased to about 100 lakh metres per annum by 1986. That yearthe company bagged orders which were to be resupplied overseasand the company undertook an expansion programme which resultedin considerable value addition and took the capacity to 230 lakhmetres per annum. The company has since then continuoslyupgraded processing facilities and increased capacity and thecurrent installed capacity is 600 lakh metres per annum.A suit has been filed by the proprietor of A.S. Industries inthe court of the District Judge Delhi against the company forrecovery of Rs. 27213.39 which is currently being disputed bythe company. Three cases are pending in the Labour Court atThane as of 30th September 1994 asking for reinstatement ofemployees whose services were terminated. These cases have beenregistered in the erstwhile (Sunil Dyeing Pvt. Ltd.) name ofthe company.Business : Initially SIL was engaged in the manual processing ofcotton textiles. Later it started processing of syntheticfabrics and blended fabrics. In 1984 it also started powerprocessing. Currently the Company is engaged in manual andpower processing of all types of fabric for a wide range ofthread count.SIL was till recently engaged in processing cloth for clients ona job work basis for clients but has since also startedprocuring grey cloth processing it and selling it as finishedfabric. This has resulted in better price realisation as theCompany is getting the benefit of the value addition.Currently the company is engaged in both-job work for clientsas also selling of cloth which it processes on it''s own account.SIL''s main clients are trading houses which procure the finishedcloth either for local sales or for exports. SIL has alsoprocessed cloth for and sold to a number of Government clients.The company has a good reputation among it''s clients for productquality as it has one of the largest installed capacities fortextile processing as also state of the art equipment. Thecapacity has increased from 40 lakh meters per annum in 1979 to600 lakh meters per annum today.The company now wishes to increase the volume of cloth which itprocesses on it''s own account. It expects the demand for it''sproducts in the year 1994-95 to exceed the currently installedcapacity and is undertaking the project to expand it''s capacityto 1050 lakh meters per annum.