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Modern Denim Ltd.

BSE: 500451 Sector: Industrials
BSE 05:30 | 01 Jan Modern Denim Ltd
NSE 05:30 | 01 Jan Modern Denim Ltd

Modern Denim Ltd. (MODERNDENM) - Company History

Established as Modern Suitings Modern Denim (MDL) belongs to the Modern group. In 1990 it formed its denim division for which a 100% EOU was set up at Ahmedabad which commenced commercial production in 1992-93 using rope dyeing technology to manufacture indigo blue denim. In 1993 MDL acquired its present name after its suitings business was vested with Modern Syntex (I) a group company. It is the second biggest denim manufacturer in the country. MDL entered into a technical agreement with Tencate Consultants (TCC) Holland for the denim project. TCC will in turn be acquiring the technical know-how from Atlantic Mills Ireland which manufactures indigo blue denim fabric.It's product quality is widely appreciated in the international market including the UK the US Singapore Hong Kong Chile West Asia etc. MDL plans to tie up with a leading manufacturer of jeans to produce readymade jeans.It issued right NCDs and privately placed preference shares to increase its capacity from 7.2 mln mtr pa to 10 mln mtr pa and to put up an EPCG denim unit with a capacity of another 10 mln mtr pa to increase its total capacity to 20 mln mtr pa. This expansion has been completed and has commenced operations from Oct.'95. It now plans to implement the balancing scheme to improve the capacity utilisation and also diversify the product mix to cater to the highly competitive international market.The accumulated losses of the company at the end of 31st March 1999 have resulted in erosion of more than 50% of its peak net worth during the immediately preceeding four financial years making it potentially sick industrial company and has therefore decided to submit the necessary report of such erosion of net worth to the BIFR.As the Denim Industry is in the recessionary trend the company suffered a lot during the year also and still not recovered from the heavy loss.However the demand for new innovations like Ring DenimStretch Denim used by fashion designers are increasing world over.