EASTERN SILK INDUSTRIES LTD
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BSE Code:
590022
NSE Code:
EASTSILK
Business Profile
Business Profile
Eastern Silk Industries (EASTSILK) is a Kolkata-based company engaged in diversified activities involving silk fashion accessories and furnishing fabrics. The company was incorporated on Apr. 9, 1946 and got its current name on Aug. 12, 1975.
The company activities include manufacture of silk yarn, fabrics & made-ups, home furnishings, fashion fabrics, handloom fabrics, double width fabrics, scarves, laces and belts and embroidered fabrics. It offers products in furnishing fabrics and fashion accessories. Furnishing fabrics include plain, checks, stripes, embroidery, prints, jacquards, patch/quilt/pintucks, embossing, print and hand embroider, and machine embroidery. Fashion accessories include fashion fabrics, readymade furnishings, scarves, kurtis and sharongs.
The company has four manufacturing units including two in Anekal, Bangalore, one each in Nanjangud, Karnataka and 24 Parganas, West Bengal. It has an installed capacity for silk weaving/embroidery of 1.39 million meters per annum, spun silk yarn of 240 M/T per annum, and noil silk yarn of 360 M/T per annum. The company is expanding fabric capacity at the Anekal plant from the existing 0.8 million meters per annum to 1.2 million meters. A parallel project is the plant for manufacture of made-ups (made from natural silk fabrics) at Bommasandra on Hosur Road, which will utilize about 90% of the fabrics made at the Anekal plant. Production is to start by 2007. The planned capacity is for 1,500 sets/day, where each set has three/four pieces.
The company is an established export house and has been recognized as Golden Star Trading House by the government of India. The research wing has successfully developed a fast color printing technology on fabrics, a basic need for selling in overseas markets.
The registered office is at 19, R.N. Mukherjee Road, Kolkata-700001.
Financials
Eastern Silk Industries registered a profit of Rs 190.24 million for the quarter ended June 2007.
It recorded a net sales of Rs 1,246.38 million for the quarter.
Total income was Rs 1,271.9 million for the quarter ended June 2007.
The earnings per share of the company stood at Rs 11.87 for the quarter ended June 2007.
Recent Developments
07-JUL-07
On Jul. 10, 2007, the board of directors decided to raise funds to the extent of USD 100 million by issue of GDRs/ADRs/FCCBs for expansion/acquisition plans of the company, subject to shareholders approval.
29-MAY-06
The company alloted its 2,018,650 equity shares of Rs 10 each at a price of Rs 250.16 a share to investors. The investors to whom shares were alloted include IL&FS private equity trust-leverage India (1,399,100), IL&FS employees welfare trust (9,990), IVC employees welfare trust (9,990 ), EIF-Coinvest V (199,870) and TAIB Bank (399,700).
Future Plans
The company is in the process of setting up an manufacturing unit with capacity of 1,500 units a day. The unit will involve an investment of Rs 180 million and is expected to get operational by May 2007. The company is also investing in upgrading its technology and in new product development. It is also looking at inorganic growth opportunities and is likely to invest to the tune of Rs 780 million over the next two years.