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Ocean Knits Ltd.

BSE: 514468 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Ocean Knits Ltd
NSE 05:30 | 01 Jan Ocean Knits Ltd

Ocean Knits Ltd. (OCEANKNITS) - Company History

.RM77 OCEAN KNITS LTD. INCORPORATION & PROMOTION: Incorporated on 30th June, 1992 and obtained Certificate of Commencement of Business on 14th May, 1993. Promotted by Prem Bajaj and his associates. Presently enganged in the production and marketing of childrens knitwear. EXPANSION PROJECT: Setting up an integrated unit for cateing children's wear and to a small extent to designer men's wear by using the tie-up with heathtex apparel Corporation for licensing and technical support in manufacturing and marketing of Kidswear and the brand name healthtex. Acquired land admeasuring 3955 sq. mtrs at Attibele Industrial Area. Attibele, Bangalore. Major plant and machinery such as Juki Model DDL-5530 Needle Bed drop Feed Lock Stich Machines, Button Stich Sewing Machine etc. were imported indigenously. Other machines such as Flat Lock Dyeing unit etc., shall be procured indigenously. TECHNICAL COLLABORATION: Has entered into a technical collaboration agreement with Healthtex Apparel Corporation, USA for providing licence design and styling support and technical support. The agreement is valid for a period 5 years. A royalty fee of @ 5% on net sales would be paid to the collaborator. COST OF THE RPOJECT & FINANCE: The total cost of the project estimated at Rs. 495 lakhs, was to be met by term loan of Rs. 95 lakhs both KSFC and lease finance. SCHEDULE OF IMPLEMINTATION: Commercial productio expected to commence by March 1995. RISKS AS PERCEIVED BY THE MANAGEMENT: (i) Changes in Government Policies regarding the knitwear industry may affect the profitability of the Company. (ii) Fluctuation in the price of cotton yarn will affect the profitability of the Company. The Company will face competation from existing and new units. (iv) NOC from Karnataka State Pollution Control Board yet to be received. (v) The apprasing institution is not participazting in the means of finance for the issue. DETAILS OF THE ISSUE: Authorised capital for Rs. 600 lakhs comprises 60 lakh equity shares of Rs. 10 each issued, subscribed and paid-up. 26,10,319 shares of Rs. 10 each, now being issued, of which1,10,319 shares 2,00,000 shares and 3,00,000 are reserved for firm allotment to promoters, Directors etc. Kothari Pioneer Fund and OCBs/NRIs respectively. Of the remaining 2,00,000 shares are reserved for preferential allotment to Indian Matual Fund with a provision to add back the unsubscribed protion, if any, to the public issue of 18,00,000 shares.