|MTL was established in 1995 as an equal joint venture
company between Morarjee Realties Ltd. (then known as
Morarjee Goculdas Spg. & Wvg. Co. Ltd.) (MRL) and
Manifattura DiValle Brembana SPA of Italy (Brembana)
for manufacture and sale of high quality cotton shirting
fabrics both in domestic and export markets. The Companys
manufacturing facilities are located at Bultibori, MIDC,
Nagpur, which was earlier an 100% EOU but subsequently
converted to Domestic Tariff Area (DTA).
The Company commenced commercial production in January 1998
and quickly established its reputation as manufacturers of
high quality shirting fabrics. It achieved a turnover of
Rs.8.48 crores during 1997-98, which increased over the years.
On the basis of its export performance, the Central Government
awarded it an export house status.Pursuant to discussions between
the joint venture partners, the entire equity stake held by
Brembana in the Company (representing 1,64,38,000 equity shares
of Rs.10 each fully paidup constituting 50% of the equity
capital of the Company) was acquired by MRL in September 2003
for a total consideration of US$ 1 million. Out of this,
1,61,09,240 shares (49%) were acquired by MRL and the balance
3,28,760 equity shares representing 1% of the equity capital of
the Company was acquired by the Morarjee Goculdas Spg. & Wvg. Co.
Ltd.Senior Employees Option Scheme (MGM ESOP Scheme) towards
Stock Options to be granted to the employees at an appropriate
time. With this acquisition, the Company became a 99% subsidiary
of MRL. In terms of the arrangement, Brembana agreed to continue
to make available to the Company its collection set up, technical
and marketing inputs even after it ceased to be shareholder of
the Company. Brembana also agreed to the forfeiture of the Advance
against Equity advanced to the Company.
As explained earlier in the Information Memorandum, in 2003, MRL
undertook a restructuring exercise, whereby inter alia, it sold
and transferred its textile business to the Company w.e.f. 1st
October 2003, thereby consolidating the textile business of both
the companies, in one company (i.e. Morarjee Brembana Limited),
at Bultibori, near Nagpur, a low cost zone. This was done with a
view that MRL could concentrate on its core business of Real Estate
- Morarjee Textiles Limited has appointed Ms. Rupa Desai as Company Secretary and Compliance Officer in place of Mr. S.C. Kashimpuria with effect from November 01, 2009.