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Lakshmi Mills Company Ltd. Company History and Annual Growth Details

1910 - The company was incorporated at Coimbatore. The main objective
of the company is to manufacture cotton yarn, staple fibre yarn
and cloth under the trade have 'Lakshmi Mills'. It spins counts
ranging from 20s to 100s and the cloth width ranges from 50' to

1947 - 24,000 bonus shares (Rs. 50 paid up) issued in prop. 1:1. The
23,282 partly paid shares made fully paid by capitalisation of
reserves @ Rs. 25 per share.

1948 - 71,282 'A' bonus shares issued in prop. 1:1.

1957 - 71,282 shares of Rs. 50 each and 71,282; 'A' shares of Rs. 25
each issued at rights at par in prop. 1:1. Only 70,718 shares of
Rs. 50 each and 70,718 'A' shares of Rs. 25 each taken up.

1966 - 2,13,000 'A' equity bonus shares issued in prop. 1:1 equity and
1:2 'A' equity.

1977 - Coimbatore Cotton Mills Ltd., was amalgamated with the company
effective from the close of business on 30th November.

1979 - 36,000 No. of equity shares of Rs. 50 each and 36,000 'A' equity
shares of Rs. 25 each allotted without payment in cash to the
members of Coimbatore Cotton Mills Ltd. in the prop. of 1 equity
and 1 equity 'A' share for every equity shares of Rs. 100 each
held by them on its merger.

1981 - Authorised capital reclassified. Bonus equity shares issued in
prop. 1:1 are as follows:

- (i) 7,18,000 No. of equity shares of Rs. 50 each and

- (ii) 3,91,000 No. of equity shares of Rs. 50 each (surrendering
the original 3,91,000 'A' equity shares of Rs. 25 each).

1983 - The company issued non-convertible debentures for Rs. 3.75

1984 - 7,47,000 No. of equity shares of Rs. 50 each consolidated into
3,73,500 shares of Rs. 100 each.

1986 - IDBI sanctioned a loan of Rs. 2.60 crores under the textile
modernisation fund.

- United Bleachers Ltd., Mettupalayam became a subsidiary of the
company with effect from 31st March.

1989 - The Company had taken up a substantial modernisation programme.
72 old NMM looms were replaced with new high production
Lakshmi-Ruti looms to cater to needs of the export market. In
addition, the spinning preparatory machine was modernised. One
860 KVA generator was replaced by 1160 KVA generator at
Kovilpatti unit.

- The favourable monsoon all over the country and a record cotton
crop resulted in stable raw material, along with a good market
for staple fibre yarn and cloth in both domestic and export
markets, contributing higher profits.

1990 - Due to a strike by the workers the profitability declined.

- 8 nos. autoconers and high volume cotton testing instruments were
imported to cater to the needs of export market. In addition,
the spinning plant was modernised.

1991 - Profitability was adversely affected due to the steep rise in
cotton prices, changes in Government policies pertaining to
import and export of cotton yarn etc.

- The Company offered 78,435-15% partly convertible debentures of
Rs. 800 each as follows:

- (i) 74,700 debentures offered to shareholders on rights basis in
the proportion 1 debenture: 5 shares held and

- (ii) 3,735 debentures to the employees (including working
directors)/workers of the Company on an equitable basis with a
provision to offer the unsubscribed portion, if any, to Mutual
Funds/institutions at the discretion of the directors, subject
to the approval of CCI.

- Part-A of Rs. 470 of each debenture was to be converted into one
equity share of Rs. 100 each at a premium of Rs. 370 after the
expiry of 6 months from the date of allotment of debentures.

- Part-B of Rs. 330 of each debenture was redeemable at par in
three equal annual instalments at the expiry of 6th, 7th and 8th
year from the date of allotment of debentures.

1992 - The profitability, however, was adversely affected mainly due to
continued recession which led to poor offtake and unremunerative
prices, political disturbances and a strike by workmen for 58
days in the three units of the Company. The prolonged strike
came to an end and normal working resumed in all the three units
on 14th May, 1993.

- 90,200 No. of equity shares allotted (prem. Rs. 370 per share) in
conversion of debentures on 27.10.1992.

1994 - 2,31,850 shares allotted as bonus shares.

1995 - However, profitability was seriously affected on account of the
above factors coupled with additional interest burden due to the
implementation of modernisation scheme.

- New Trutzschler Blow Room Machine along with 20 second hand
Trutzschler high production cards and second hand Autoleveller
draw frames were imported.

1996 - The company entered into an agreement with M/s. Das Lagerway
Wind Turbines Ltd. for use of power generated in 40 Wind Turbines
to be installed by them.
Oct 26, 12:00 am
Oct 26, 4:14 pm
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