|Amtex India Private Limited was incorporated on 28th March 1988 and the commercial production of Denim fabric was started in 1989. The company was converted into a Public Limited company and the name was changed to Amtex India Limited vide special resolution passed u/s 21,31,44 (2)(b) at the Companies Act, 1956 on 2.4.1992 and the company obtained a fresh certificate of incorporation consequent to the change of name to Aarvee Denims & Exports Limited on 7.4.1994.
The company set up facilities for dyeing 21.6 lac metres per annum of yarn and processing of 12.96 lac metres per annum of grey fabric at Village Ranipur, Narol, District Ahmedabad. The cost of the project was Rs.86 lacs and was financed by term loans of Rs.40 lacs from State Bank of Hyderabad, equity share capital of Rs.24 lacs and unsecured loans of Rs.22 lacs from the promoters. The company commenced commercial production of denim in 1989. In 1991-92, the company set up facilities for weaving 7.02 lac metres per annum of fabric at a cost of Rs.26 lacs. In 1992-93 the company undertook an expansion project for increasing the yarn dyeing capacity from 21.6 lac metres to 81.6 lac metres per annum and the weaving capacity from 7.02 lac metres to 39 lac metres per annum. The cost of the expansion project was Rs.919 lacs and was financed by equity share capital of Rs.700 lacs (Promoters - Rs. 250 lacs, Public - Rs.450 lacs), internal accruals of Rs.79 lacs and deferred credit facilities of Rs.140 lacs from IDBI.
During 1993-94, the company installed 4 additional Lakshmi Airjet looms (financed through internal cash accruals) to increase the weaving capacity. In order to further remove the bottleneck in the weaving capacity, the company has imported 34 second hand Tsudakoma and Suizer Airjet looms at a cost of Rs.300 lacs financed by an equipment loan of Rs.300 lacs from SCICI, increasing the weaving capacity to 82.35 lac metres per annum.
In order to increase the Dyeing and Weaving capacity from 21.60 lac metres and 7.02 lac metres respectively to 81.60 lac metres and 41.68 lac metres respectively, the company came out with a Public issue in November 1992. The project which involved installation of Air Jet Weaving Machines. Yarn Dyeing and Sizing Machines and Spindle Driven Warpers etc. The company's Indigo Denim Fabrics are sold under the brand name 'Amtex Indigo Blue Denim'.
-Aarvee Denims signs MoU with Government of Gujarat.