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Banswara Syntex Ltd. Company History and Annual Growth Details

The Company was initially promoted by Shri R.L.Toshniwal and Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) in joint sector. The company was incorporated on 5.5.1976 as a Public Limited Company for manufacture of synthetic blended yarn. It received certificate of commencement of business on 27th September, 1976. Later on it was converted into Private Sector. RIICO originally subscribed to 4,69,293 shares each of Rs.10/-. In terms of the buy-back agreement
shares dis-invested by RIICO has been bought back by the promoters, their friends and relatives at price ranging from Rs.12/- to Rs.57/- per share. The company is now working as private sector undertaking. At present RIICO is holding only 12,000 shares of the Company.

The Company started its operations in April, 1978 with 12500 spindles at Banswara (Rajasthan) which is a backward area. It generated cash surplus in very first year of its operation. Expansion and modernisation programme has been undertaken from time to time. Balancing equipments were also installed. Barring year 1981-82 to 1983-84 on account of power cut in the State of Rajasthan, working of the Company remained satisfactory. The Company's performance has considerably improved in the year1987-88 onwards. Performance during the year1993-94 has been excellent. The turnover of the Company has increased substantially during 1993-94 to Rs.9453 lacs from 9100 lacs(for fifteen months) of previous year recording a annualised growth of30%. The company in fact is one of the market leaders infancy spun yarn.

The company is already in export market for last five years. Export of yarn and fabric during the year 1993-94 has been to the tune of Rs.16.16 crores compared to Rs.10.98 crores (15 months) of previous year, showing an annualised increase of 84%. The Company has been recognised as Export House by Ministry of Commerce for its export achievements. The Company has established a good overseas market of yarn and fabric. In order to increase value added exports which will ultimately improve profitability of the company a new weaving unit in the name and style of Toshco International has already been set up wherein 24 Air Jet looms are working.

The Company is undertaking expansion and modernisation programmes in phased manner. Before the commencement of this IIIrd phase of expansion project the company has already completed 1st phase in which 2880 spindles are installed. In IInd phase company has installed 2880 spindles and 21 Air Jet looms taking total installed capacity of the company before commencement of this phase to 40,260 spindles and 45 Air Jet looms with total outlay of 1175 Lacs. These two phases were funded by term loans of Rs.610 lacs from IDBI, Rs.200 lacs by UTI and balance from internal accruals.


2004

-Banswara Syntex Ltd has set up a trouser factory in Daman following a number of requests from its customers to provide them a 'package' of value-added products

2006

Banswara Syntex Ltd (BSL) has entered into a 50:50 joint venture with Carreman Michel Thierry (CMT), France.
 
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