Pioneer Embroideries Ltd

Pioneer Embroideries Ltd

Pioneer Embroideries (PEL) promoted by Rajkumar Sekhani and Manak Chand Baid was incorporated in Oct.'91 at Bombay to design and manufacture embroidery fabrics and laces at GIDC. PEL came out with a public issue in Sep.'93 to part-finance this project. The project was delayed by six months due to non-arrival of machinery and technical problems and went on stream only in Mar.'94.During 1996-97 to improve the bottom lines of the company and to meet the growing demand in fashion industry it has taken up a expansion project at Silvassa by importing 12 computerised embroidery machines having installed capacity of 46 lac meters p.a. The financing was done through by way of equity issue or optional redeemable convertable preference shares to the promoters Directors their friendsrelatives and associates and the same was commissioned during 1997-98. During 1999-2000 the Crochet Lace Division started commercial production. The Company in order to consolidate its manufacturing base in embroidery has signed a memorandum of understanding with promoters of Salzer Textiles Limited an Embroideries Manufacturer for taking over that company.The company has acquired the management control of Coimbatore based Salzer Textiles Limited(STL) a 100% EOU and embroidery manufacturer by acquiring 49.11% stake in the company during 2000-01. STL has an installed capacity of 540 million stitches p.a. In 2001-02 it has increased it stake to 52.49% making the Salzer Textiles as Subsidiary company. The company has also acquired the manufacturing base of Fancy Corporation Limited at BorivaliMumbai and has installed 3 latest computerized embroidery machines in 2001-02. Out of the 4 machines three machines were installed in 2002-03 and erection of two more machines was also completed and the commercial production is expected in the second quarter of the current financial year. The machines were installed at the Borivali plant. The total cost of the expansion were Rs.2650 lac.The expansion of bobbin lace division under 100% EOU unit at Silvassa was also completed as per the schedule at a estimated outlay of Rs.350 lac which were funded through internal accruals of the company. The Brand Hakoba has also been acquired from Fancy Corporation Ltd.The company has expanded the installed capacity of Embrodiery during the financial year 2003-04 by 1976470000(Nos) and with this expansionthe total capacity has risen to 3358870000(Nos).During April 2004Salzer Textiles Ltd has been merged with the company and according the scheme of merger during May 2004Shareholders of Salzer Textiles Ltd have been allotted One Equity Share of Rs.10 each of Pioneer Embroideries Ltd for every Twenty Five Shares of Rs.10 each held.Another companyJ J Textiles Ltd(doing job work for PEL) has also been merged with the company and during May 2004according to the scheme of AmalgamationOne Equity Share of Rs.10/- each have been allotted for every Three Equity Shares held by the shareholders in J J Textiles Ltd.