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Incorporated as a private limited company, Niwas Spinning Mills became a public limited company in 1986. Its manufacturing unit is located in Solapur, in Maharashtra. The company is engaged in open-end spinning of cotten yarn which is mainly used in bedsheets, ropes, towels, etc, of which Solapur is a major consuming centre. During 1991-92, it undertook a Rs 10.50-cr project to increase the manufacturing capacity by setting up six open-end spinning units to manufacture cotten synthetic yarn of higher counts, mainly to cater to the export market. The spinning machines were imported from Elitex, Czechoslovakia. The company entered into the export market by establishing a 100% EOU to manufacture and market terry towels. The potential areas of exports are Europe, the Gulf countries and the US. During 1995-96, Zero Interest 54,46,875 Fully convertible debentures issued in May-95 were converted into 1,37,51,550 Equity Shares at a premium of Rs.30. Since the spinning industry passed through a very tight market condition where the demand for yarn was significantly low, the networth of the company has eroded and hence it has made a reference to BIFR during the year 1999-2000. |
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