Vardhman Holdings Ltd

Vardhman Holdings Ltd

Vardhman Spinning & General Mills (VSGML) was incorporated in 1962 and commenced production in 1965. It was promoted by V S Oswal and R C Oswal and is a part of the Vardhman group which also includes companies like Mahavir Spinning Mills and Vardhman Polytex.In Nov.'92 the company came out with a Rs 47.82-cr rights issue of 14% PCDs to part-finance its expansion and to meet long-term working capital requirements totalling Rs 58 cr. VSGML has a product portfolio consisting of cotton/worsted blended yarn and cotton yarn and fabric. The company exports to the UK Spain Germany Italy Hong Kong Indonesia Japan the US and African countries. VSGML became an Export House in 1990-91. It also received the ISO 9002 certification for its textile mill. The company sold its steel unit at Faridabad to Mahavir Spinning Mills in Mar.'95.The company's Fabric Process House in the name and style of 'Auro Textiles' at village Baddi H.P. in technical collaboration with Tokai Senko of Japan with an annual installed capacity of 30 million metres started commercial production in December 1999.The 100% EOU Spinning unit at Industrial Focal Point Ludhiana was partially commissioned in March 2002. It is having a capacity to manufacture 4 tons of tyre cord yarns at a cost of RS.624 lacs. The Dyeing Unit at Baddi was fully modernised and the capacity was also expanded to 9 tons per day. The company has also installed 2 Open End Spinning Machines of 264 Rotors each to cater to weaving yarns requirement. The company is enhancng its yarn manufacturing facility at a cost of Rs.19.55 lacs. The first phase of 1.45 tons per days was completed and the second phase of 2.17 tons per day will be completed in the next financial year. It is also increasing the capacity of Auro Weaving Mills by 58 looms at an estimated outlay of Rs.27.12 lac. After completion the capacity of the looms will be increased to 264 looms. The project is expected to be completed in 2003-04.During the year 2004-05 as part of the scheme of arrangement and demerger between Vardhman Spinning and General Mills Ltd and Mahavir Spinning Mills Ltd the textile business of the company vests in Mahavir Spinning Mills Limited with effect from 22nd April 2005. In accordance with the scheme of arrangement and demerger the shareholders of the VSGML have been alloted/issued 8 equity shares of the Mahavir Spinning Mils Ltd and 2 equity shares of the VSGML for every 10 equity shares held in the VSGML and the company has issued 3191536 equity shares of Rs.10/- in lieu of the retained shares in the company.