RAJAPALAYAM MILLS LTD-$
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BSE Code:
532503
NSE Code:
RAJPALAYAM
Business Profile
Business Profile
Rajapalayam Mills (RAJAPAMIL), incorporated in 1936, is a long established spinning mill producing yarn of different counts and has other divisions involved in tissue culture and wind-generated electricity. It is part of the Ramco group, which has business interests in textile, cement, seamless pipes, biotechnology, fiber cement sheets, surgical products, software and other diverse fields of manufacturing. Madras Cements, Ramco Industries, Sri Vishnu Shankar Mill, Sudarsanam Spinning Mills, Sandhya Spinning Mill, Thanjavur Spinning Mill, Rajapalayam Spintext, Sri Ramco Spinners and Rajapalaiyam Textiles are other group companies.
Focusing on the export markets with premium quality yarn and value-added yarn such as compact yarn, gassed yarn, elitwist yarn and double yarn, the company has its manufacturing unit located at Rajapalayam in Tamil Nadu with a total capacity of 2,016 rotors and 122,864 spindles as on Mar. 31, 2008. As part of a continuous intensive modernization program, it has invested about Rs 140 million by availing a term loan under Technology Upgradation Fund (TUF) scheme for investment in state-of-the-art textile machinery and equipment like a slub yarn system, elite compact set, auto coners, and combers.
Shri Ramco Bio-Tech, the tissue culture unit near Bangalore, uses technology to develop ornamental and orchard plants. It has purchased a new technology from abroad to produce high quality tissue culture plants and has exported live plantlets for a value of Rs 15.4 million. The wind mill division has an installed capacity of 21.9 MW located in the Kanyakumari district of Tamil Nadu. Major export destinations for cotton yarn are Japan, Korea, Bangkok, Malaysia, Dominican Republic, China, Honduras, Indonesia, Italy, Bangladesh, Sri Lanka, Spain, Mauritius, Dubai, Bahrain and Vietnam. Mitsubishi Corporation, Docobo Co. and Unitika help promote exports to Japan and other countries
The registered office is at Rajapalayam Mills Premises, P.A.C. Ramasamy Raja Salai, Rajapalaiyam-626117, Tamil Nadu.
Financials
Rajapalayam Mills registered a net profit of Rs 41.3 million for the quarter ended September 2008.
It recorded a net sales of Rs 610.4 million for the quarter ended September 2008.
Total income was Rs 654.4 million for the quarter ended September 2008.
The earnings per share of the company stood at Rs 12 for the quarter ended September 2008.
Future Plans
The company has taken up an expansion program of increasing spindles capacity by about 16,800 spindles at a project cost of about Rs 500 million. In view of additional demand for double yarn, it is proposed to increase the TFO capacity at a project cost of about Rs 200 million. It is also proposed to increase the capacity of OE spinning by 1,800 rotors at a project cost of Rs 350 million. The OE spinning unit is proposed to be established in Andhra Pradesh. Necessary loan has been sanctioned by bankers under the Technology Upgradation Fund (TUF) scheme. Orders have already been placed for the project, and the project is expected to be completed during the third quarter of FY08.