United Textiles Ltd., was incorporated under the Companies Act, 1956 having its registered office at Devi Bhawan Road, Hisar, Haryana and Certificate of Commencement of business was obtained from Registrar of Companies Delhi and Haryana.
United Textiles Ltd., is a new company and is presently engaged in setting up a cotton yarn manufacturing unit at Hissar, Haryana with an installed capacity of 2050 MT per annum. The company, being a new entrant in the industry, may fact the initial problem of market penetration and quality stablisation. However, the promoters have long experience in this trade and do not foresee any problem in this regard. Moreover the product of the company not being a branded product should not have any difficulties associated with brand creation and selling its products. For better quality yarn production the company will follow Open End Rotor Spinning Process which has good distinct advantages over the traditional ring spinning process in producing cotton yarn of more regular texture and better appearance. The availability of cotton is dependent on the cotton crop, which in turn depends on climate. About 99% of the area in Punjab and Haryana is under irrigation resulting in minimum fluctuation in production of cotton from one year to another, thus ensuring regular supply of raw material to the company.
Due to fluctuation in raw material prices and stiff competition in finished goods the performance of the company decreased by 15%.