Malwa Cotton Spinning

Malwa Cotton is another company which has put up a good performance in the first half of the current year. Against a net profit of Rs 5.12 crore in the previous first half, it has achieved a net profit of Rs 9.27 crore "" an increase of 80 per cent. Sales during the same period grew 190 per cent to Rs 181.34 crore. The company makes cotton and synthetic yarn and has a substantial presence in the export markets. During 1996-97, it recorded a significant increase in exports by breaking into new markets. Exports recorded a growth of more than 100 per cent to Rs 116.88 crore.

Malwas units are located in Barnala, Punjab and Paonta Sahib, Himachal Pradesh. It is now setting up a 100 per cent EOU to make cotton yarn with a capacity of 25,200 spindles at a cost of Rs 48 crore. Last year the company started production on 13,104 spindles with the remaining 12,096 spindles to start contributing in the current year. With enhanced capacities and decline in prices of raw materials the company should easily surpass its performance of the previous year. The scrip currently quotes at Rs 94.