Vardhman Polytex Ltd
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BSE Code:
514175
NSE Code:
VARDMNPOLY
Business Profile
Business Profile
Vardhman Polytex (VARDHMNPOLY), part of the Vardhman group, is engaged in the manufacture of yarn. It was incorporated in 1980 as Punjab Mohta Polytex and got its current name in 1989.
The company produces various categories of yarns like cotton, polyester cotton blended, synthetic, acrylic and dyed yarns. It is engaged in cotton spinning and line manufacturing, staple fiber yarn machine combing and re-combing of all types of fibers. The company has production facilities for cotton yarn spinning in Bathinda (Punjab), Baddi (Himachal Pradesh) and a worsted spinning unit in Ludhiana (Punjab). With the addition of 25,000 spindles in Ludhiana, the company would have a total installed capacity close to 125,000 spindles. The company has also set up an independent cotton purchase office in Bathinda for the selection and procurement of cotton.
In a joint venture agreement with the F.M. Hammerle group, Austria, the company has a subsidiary Oswal F.M. Hammerle Textiles for the manufacture of quality yarn and piece dyed shirting fabric with annual capacity of 12 million meters in Kagal village, Maharashtra. The subsidiary has signed a memorandum of understanding with the Government of Maharashtra in June 2007. The company`s yarn production of 40% is exported to more than 25 countries and has presence in markets like the EEC, USA, Canada, China, Japan, Korea, Mexico, Brazil, Mauritius, and the Middle East.
The registered and corporate office of the company is located at 341 K-1, Mundian Khurd, P.O. Sahabana, Chandigarh Road, Ludhiana-141123.
Financials
Vardhman Polytex registered a steep drop of 73.76% in net profit of Rs 12.36 million for the quarter ended September 2007 from a profit of Rs 47.1 million for the quarter ended September 2006.
Net sales declined 6.11% to Rs 923.36 million for the quarter ended September 2007 from Rs 983.5 million for the quarter ended September 2006.
Total income dipped 5.6% to Rs 937.76 million from Rs 993.4 million for the quarter ended September 2006.
The earnings per share (EPS) of the company stood at Rs 1.16 for the quarter ended September 2007.
Recent Developments
10-JUL-07
On June 9, 2007, the shareholders approved the issue of foreign currency convertible bonds (FCCBs) to the tune of USD 15 million. At present the company proposes to issue FCCBs to the tune of USD 10 million with a green shoe option of USD 2 million. The said FCCBs are convertible into equity shares of Rs 10 each.
18-JUN-07
On June 18, 2007, a memorandum of understanding (MOU) was signed between the Government of Maharashtra and Oswal FM Hammerle Textiles, a subsidiary of the company.
11-JUN-07
The shareholders approved the scheme of amalgamation of Amkryon International with the company.
Future Plans
The company is planing to expand its capacity from 75,000 spindles to 133,000 spindles.