VARDHMAN TEXTILES LTD
Add to watch list to get report alerts
BSE Code:
502986
NSE Code:
VTL
Business Profile
Business Profile
Vardhman Textiles (VARDHTEXT), incorporated on Oct. 8, 1973, has a major presence in the manufacturing of yarn, fabric, sewing thread and steel. It is part of the Ludhiana-based Vardhaman group, which has expanded manifold and is today, one of the largest textile conglomerates in India with a portfolio including manufacturing and marketing of yarns, fabrics, sewing threads, fiber and alloy steel.
The product portfolio includes a wide range of specialized grey, dyed, and blended yarns in cotton, polyester, acrylic, lyocel, Lycra, silk, wool and Tencel. The sewing thread range includes apparel sewing threads, specialty threads, textile crafts and kite flying threads. Fabrics are manufactured for both tops and bottoms in the apparel segment and acrylic staple fiber under the brand name Varlan used in manufacturing of hand knitted yarns, jerseys, carpets and other items. The steel business includes manufacture of special and alloy steel used in automotive components, engineering applications, forging, railways and other industries with a capacity of 84,000 MTPA rolled products and 100,000 MTPA steel ingots and billets.
The company is expanding and modernizing current capacities of spinning, weaving and fabric processing at Baddi in Himachal Pradesh and Punjab. New facilities at Satlapur, and Budni in Madya Pradesh will enhance capacities. Post expansion, the total capacity of spinning would go up from 536,440 spindles to 776,440 spindles, fabric processing capacity from 4.2 million meters per month to 85.9 million meters per month, 28.3 MT per day sewing thread, 54.5 MT per day mercerizing and dyeing of yarn and fabric, and 18,500 MTPA acrylic fiber. The company has already installed a 25 MW captive power plant.
A licensing agreement is in place with American & Efird, Inc. USA for manufacturing and distribution of the famous A&E branded sewing threads and tie-ups with world leaders in Switzerland, Germany, Japan and Korea for its various products. VMT Spinning Company, Vardhman Yarns & Threads, Vardhman Acrylics are subsidiaries and Vardhman Threads, a step-down subsidiary. Serving top of the line customers like Banana Republic, GAP, Espirit, and Ann Taylor, major export destinations include USA, EU, Australia, Canada, UAE, UK, Japan, and several other countries.
The registered office of the company is at Chandigarh Road, Ludhiana, Punjab-141010.
Financials
Vardhman Textiles registered a steep drop of 22.24% in net profit of Rs 401 million for the quarter ended December 2007 from a profit of Rs 515.7 million for the quarter ended December 2006.
Net sales rose 12.53% to Rs 6,119 million for the quarter ended December 2007 from Rs 5,437.9 million for the quarter ended December 2006.
Total income rose 12.66% to Rs 6,213 million for the quarter ended December 2007 from Rs 5,514.9 million for the quarter ended December 2006.
The earnings per share (EPS) of the company stood at Rs 4.5 for the quarter ended December 2007.
Recent Developments
24-MAR-08
Vardhman Textiles announced the scheme of arrangement, re-organisation and demerger by and amongst Vardhman Textiles (VTXL), Vardhman Threads (VTL), Vardhman Yarns and Threads and their respective shareholders and creditors has been sanctioned on Mar. 17, 2008. The Scheme provides for the transfer of the Sewing Thread Business of VTXL on slump sale basis and demerger of the Sewing Thread business of VTL to VYTL.
19-FEB-08
The company holding 44,175,413 equity shares (40.7%) of Vardhman Acrylics (VAL) has further acquired 11,700,000 (10.78%) and 3,300,000 (3.04%) equity shares of VAL from its foreign collaborators, Marubeni Corporation, Japan and Japan Exlan Company, Japan respectively to end the joint venture agreement with the said collaborators.
28-JAN-08
On Jan. 28, 2008, the board of directors took note of the status of scheme of arrangement, reorganisation and demerger by and amongst Vardhman Textiles (VTXL), Vardhman Threads (VTL) (a 100% subsidiary of VTXL), Vardhman Yarns and Threads (VYTL) (a subsidiary of VTXL) and their respective shareholders and creditors, providing for the transfer of the sewing thread business of VTXL on slump sale basis as well as demerger of the sewing thread business of VTL to VYTL. The Board of Directors decided to explore possibilities for tie-ups including overseas investments for the sewing thread business and to appoint consultants or advisors if required.