ADITYA SPINNERS LIMITED
On behalf of the Board of Directors of your Company, I extend to you and
our fellow shareholders my heartfelt thanks for your overwhelming support
and response to your Company's maiden Public Issue of 1,22,50,000 Equity
Shares of Rs. 10/- each for cash at par during February '94 The issue was
oversubscribed more than two times and the Board of Directors is proud to
record the confidence and faith reposed by you, along with another 68,000
Shareholders, in the future of your Company.
October '93 ushered in the start of Commercial Production of your Company
with the installation of 8640 spindles, out of the total 25,000 spindles as
envisaged in the project. The Company recorded a total income of Rs.
413.23-Lakhs during the period between October'93 and March'94 and earned a
net profit of Rs. 6.12 lakhs. Considering that these results were achieved
only on partially established capacity during the period, they should be
During the current year with additional spindlage that has been
commercially established and more that is being erected along with the
growing acceptance of 'ADITYA' products by the market as a premier quality
product, I am confident that the turnover will increase manifold during
ECONOMIC SCENARIO AND CHANGING TRENDS:
The Indian economy, consequent to the liberalisation process initiated by
our Government, is witnessing many changes in several fields and
specifically in Textiles The Textile industry is amongst the fastest
growing core sectors in our economy. The industry is poised for major
growth in the immediate future, due to increasing demand both in our
country and in the export market.
Textile exports from India are expected to cross. US $9 billion during
1994-95 as per the current trends of exports until June,'94.
The challenge of GATT and phasing out of quotas at the end of a ten-year
transition period, global trade in textiles would be thrown open and it
would be essentially governed by quality, pricing and marketing skills.
I am happy to inform you that your Company has from the beginning set its
sight to be a 'QUALITY PRODUCER'. In line with this goal, the Company has
opted for ISO 9000 standardisation. The Company expects to get this stamp
of ISO 9000 before the close of this financial year.
With India's share in the textile exports at just 2%, there is a great
future for your Company to enter the export market in a big way. I am happy to inform you that your Company's product even today is being used by
established fabric exporters. Further, your Company's product samples have
been tested and approved by some prospective buyers abroad. I am confident
that the export efforts of your Company will fructify sooner than later.
The Company's turnover in the first six months of this year has doubled
over that of the last six months and the Company is confident of reaching a
turnover of well over Rs. 20 crores during the current year.
The Company also proposes to manufacture value-added products like dyed
yarn, 100% polyester sewing thread and some grade of industrial yarn. These
products will add to the income and profits of the company within the next
On behalf of the Board of Directors, would like to thank Institutional
Investors viz., Unit Trust of India, Morgan Stanley, General Insurance
Company, SBI Caps, for their support to our Public Issue.
I will be failing in my duty if I do not place on record my appreciation
and gratitude' to the Industrial Development Bank of India, Industrial
Finance Corporation of India and the Company's bankers, State Bank of
Hyderabad, State Bank of Travancore, State Bank of Patiala for their
support. I would also like to thank the Company's Contractors.
Company's Contractor M/s. Siddarth Associates, M/s. Srinivas, M/s. SABC,
M/s. ELGI, M/s. Voltas, M/s Vijay Laxmi Engineering Works Ltd., Associated
Textile Engineers, RJK Industries, and a host of others who generously
supported the Company with their services Major credit for the success of
this Company goes to the Company's dedicated team of managers and workmen
and I thank them for their loyalty and hard work.
I also would like, on this occasion, to thank my other collaegues on the
Board for their advice and support.
I thank you once again for your support and confidence and I wish you all a
very Happy " Deepawali".
( This does not purport to be a report of the proceedings of the Annual