Vertex Spinning Limited
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BSE Code:
531544
NSE Code:
Business Profile
Business Profile
Vertex Spinning (VERTEXSPG) manufactures acrylic yarn and acrylic mink blankets in various sizes. Incorporated on Sep. 12, 1994 as a private limited company, it was converted into a public limited company on May 05, 1995. Earlier known as Vertex Technosoft, it got its present name on Feb. 14, 2006. The company is part of the VML group of companies, which also includes Brakes Auto (I), S.S. Forgings and Engineering and Sterling Kalksand Bricks as other group companies.
One of the largest manufacturers of acrylic mink blankets in South-East Asia, the company has a plant at Pithampur in Madhya Pradesh with a capacity to produce 6,000 MTPA acrylic yarn and 4,000 to 5,000 acrylic mink blankets per day in various sizes. On completion of the 25,000 spindles expansion program, it will become one of the top three acrylic blanket manufacturers globally.
The company has acquired 200,000 sq. m. of land for phase-1 and started construction activity for its new Rs 5.12 billion cotton spinning project at Nardhana Industrial Area in the Dhule district of Maharashtra. A further 200,000 sq. m. land has been reserved for further expansion with the MIDC authorities. A memorandum of understanding was signed with the Government of Maharashtra under which several incentives would be granted. Commercial production is expected to begin by early 2009. The plant is being set up with capacities of 24,000 MTPA 30s/40s cotton yarn, 4 MT per day yarn dyeing, 18 million meters weaving, and 55,000 meters per day fabric processing. A tie-up is in place with 95 local new local Dhule entrepreneurs under the work shed scheme.
The company started exporting its new products of acrylic mink blankets under the brand name Diana in FY07. There is heavy demand for mink blankets from Spain and UK resulting in capacity utilization for the next two years. It has already established itself as a strategically located quality supplier of acrylic blankets in the domestic markets, Africa, USA, UK, Australia, Canada and Asia. Vertex Commodities and Finpro is a subsidiary company.
The registered office is located at 1011, Embassy Centre, Nariman Point, Mumbai-400021.
Financials
Vertex Spinning registered a profit of Rs 70.57 million for the year ended March 2008.
It recorded a net sales of Rs 973.73 million for the year ended March 2008.
Total income was Rs 974.58 million for the year ended March 2008.
The earnings per share of the company stood at Rs 0.35 for the year ended March 2008.
Recent Developments
11-JUN-08
The company at Nardana, Dhulia, is developing an integrated textile park, wherein the company`s unit of 162,000 spindles is coming up. However, due to non-availability of water and power, the company`s project is delayed for further eight to nine months.
25-FEB-08
The Government of Maharashtra and Vertex Spinning have on Feb. 15, 2008 signed a memorandum of understanding (MOU) in connection with the greenfield project being set up by Vertex Spinning in the D zone area of Naradhana Growth Centre Phase II at Babhalte village, Shindkheda taluka, Dhule district, Maharashtra to manufacture 30s/40s count cotton yarn. The total cost of the project is estimated at Rs 5.12 billion, which would be invested by the company and funded from banks, public and internal accruals during the period 2007-2012. The project would provide direct employment to 2,800 persons. The Government of Maharashtra has granted the following incentives to the company:
-Electricity duty exemption for a period of seven years from the date of commencement of the project.
-100% exemption from payment of stamp duty.
-Industrial promotion subsidy (IPS) equivalent to 100% of Eligible Investments made with effect from May 8, 2007 and within such a period stipulated in the package scheme of incentives 2007 commencing from the date of signing of the MOU. The IPS will however be limited to 100% of the company`s eligible investments less the amount of benefits availed through electricity duty exemption and exemption from payment of stamp duty as per the period prescribed therein or to the extent of taxes paid to the State Government within a period of seven years whichever is lower.
-75% reimbursement of expenditure incurred on account of employer`s contribution towards Employees State Insurance (ESI) and Employees Provident Fund (EPF) for a period of five years limited to 25% of FCI.
-Expenses on the preliminary/and preoperative expenses as well as technical know-how fees limited to 10% of eligible investments would be admissible for considering investment eligible for IPS.
-MIDC will be advised to provide land for the construction of staff quarters as may be permitted under its policy.
-Development Commissioner (Industries) will be advised to provide single window clearance.The Vertex Spinning project of Rs 5.12 billion will be funded from banks, public and internal accruals. The commercial production of this plant is expected to begin by early 2009. The plant is being set up with a capacity to manufacture 24,000 MTPA 30s/40s cotton yarn, 4 MT per day yarn dyeing, 18 million meters weaving, and 55,000 meters. per day fabric processing. The factory building is already in construction.