Incorporated as a private limited company on 29 Mar.'89, Souther Latex was converted into a public limited company in Sep.'93. It was promoted by S Meganathan, G Kumaresan and Nirmal Joseph. Initially, the company proposed to enter the manufacture of latex examination gloves. However, during that period the global market for latex examination gloves went through a recession and the units that entered the market ran into problems. Hence, the company decided to shelve the project and go into the manufacture of rubberised coir products using curled coir and creamed rubber latex as raw materials.
The company implemented its project for the manufacture of 90,000 rubberised coir mattresses pa at Gummidipoondi at a cost of Rs 140 lac. Commercial production commenced from Nov.'92.
In Sep.'94, the company came out with a public issue to part-finance its project for the expansion of installed capacity from 90,000 mattresses pa to 1,80,000 mattresses pa; to install facilities for finishing of mattresses ; to set up facilities for coir curling at Cumbum and to set up a latex creaming plant at Thalakkudi (Tirunelveli district). The coir plant and the latex creaming plant became operational in 1994-95.
In 1995-96, the company's new coir and latex creaming plants became fully operational substantially contributing to the reduction in the cost of production. It proposes to enter into the diversified areas of operations like latex threads, spring beds and centrifugal latex creaming plant.
The company is planning to market the product to upcountry market. The company has submitted a comprehensive proposal seeking enchancement in the working capital limits and the same is under consideration.