VIJAY TEXTILES Share price

VIJAY was originally incorporated on 2nd February 1990 inthe name and style of Vijay Textiles Private Limited. TheCompany was subsequently converted into a Public CompanyVijay Textiles Limited and a fresh certificate ofincorporation was obtained on 17th June 1994.VIJAY is an existing profit making company. Initially thecompany was in the business of trading in textiles. Themajor activity consisted of purchase of Polyester Yarn fromReliance Industries Limited converting the Yarn into GreyCloth at Bhiwandi through job contracts and converting theGrey Cloth into finished fabrics through textileprocessors. The fabrics were marketed under the brandname "VIJAY" throughout India.With the brand name established in the major markets andhaving created the necessary sales network the Companyventured into full fledged manufacturing of processedtextiles by acquiring a running textile processing unitfrom M/s S.K. Textile Industries on 30th June 1993. Thetotal sale consideration paid for the acquisition was Rs. 850000/-for the land admeasuring 2 acres togetherwith all the rights easements equipments structures. Theland was purchased on the basis of negotiated price. Thesale was registered vide deed no. 5688 of book 1993 by theRegistrar Rangareddy District Andhra Pradesh. The aboveconsideration was valued as follows:Land--2 acres @ Rs. 400000 per acre.8 colour flat bed and 75 KVA Generator--Rs. 50000.The original and residual life of the above equipments is 5years with normal maintenance.The Company''s facilities for manufacture of processedtextiles are located at APIIC Industrial Estate Khattedannear Hyderabad on freehold land of 2 acres. The installedcapacity is 172 lacs metres. This installed capacity isexpressed on the basis of product mix comprising of 96 lacmetre per annum of printed polyester shirting and 76 lacmetre per annum of dyed polyester shirting. However thecapacity utilisation will constantly vary depending on theproduct mix choosen as each blended variety viz. trilobalswiss cotton jersy and boskey require different processingtime. The Company proposes to manufacture more of blendedfabrics as the margins are higher in these varieties.The Company is presently operating ala capacity of 5-6 lacmetres per month. The Company''s Corporate Office andGodown is situated at the prime location "Surya Towers" inSecunderabad.In the very first year of manufacturing activityi.e.1993-94 the Company has achieved a Post Tax Profits ofRs. 98.03 lacs on turnover of Rs. 1304.88 lacs. Themajor factors that has contributed for the tremendousincrease in the sales for the year ended 31.3.1994 over theyear ending 31.3.1993 are(i) The Company''s manufacturing activity commenced fromSeptember 1993 onwards which have yielded higher margins.Prior to that the Company was carrying on only tradingactivity.(ii) The Company was able to fully meet the demand forfabrics of the desired designs required quality andquantity at a competitive price during the festive seasonof Pongal in January 1994.The Company during 1993-94 concentrated mainly on 100%Polyester Fabrics and Grey Fabrics. This product mix wassubsequently shifted in favour of Blended Fabrics whichyield substantial margins. This is reflected in the halfyear results of the Company ended 31st December 1994. TheCompany has achieved Profits After Tax to the tune of Rs. 212.26 lacs on a turnover of Rs. 1536.58 lakhs.