Girnar Fibres

Jointly promoted by Deep Chand Jain and the Madhya Pradesh Audyogik Vikas Nigam (MPAVN) Girnar Fibres is engaged in spinning cotton yarn (cap.: 12480 spindles). Jain has thirty-six years of experience in the hosiery industry. The other companies promoted by him are Girnar Fabrics Pvt Ltd Girnar Knitwear and Girnar Hosiery.The company expanded its capacity upto 26920 spindles. It mainly manufactures hosiery yarn in the count range of 26s and 30s and will continue to do so after the expansion. To finance the project cost of Rs 26 cr it came out with a rights-cum-public issue in Oct.'95. The rights issue (1:2) was at a premium of Rs 2.5 while the public issue was at a premium of Rs 5.The company initially commenced production below capacity in Aug.'93. The entire capacity went on stream in phases by Mar.'95. Its performance has been average. The expanded capacity were completed in Apr.'96. In 1995-96 the company increased the additional 14440 spindles at the site adjacent to the existing unit at Pithampur M.P. To over come the required finance company came out with Rights Cum-Public Issue. Rights Issue was subscribed but the public issue evoked poor response.Company's expansion project of Spindles from 12480 Spindles capacity to 26554 Spindles capacity was completed commercial production started in Feb-1999. Company also proposed to set up its own Captive Power Plant at Pithampur (M.P.)which result into reduction of cost of power and fuel expenses & improve the financial strength of company.