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Nitin Spinners Ltd. Company History and Annual Growth Details

The Company was incorporated as a private limited Company on
15th October, 1992 under the Companies Act, 1956 in the state of
Rajasthan having the name 'Nitin Spinners Private Limited'.
Subsequently, The Company was converted into a public limited
company on 15th November, 1994 and the name was changed to
Nitin Spinners Limited. The individual Promoters of our Company are
Mr. R. L. Nolkha, Mr. Dinesh Nolkha and Mr. Nitin Nolakha.

The Company is presently engaged in the manufacturing of cotton
yarn and knitted fabrics.It has grown by undertaking expansions
at regular intervals to reach at our present capacity of 27216 spindles,
1872 Rotors and 15 knitting machines. It has installed Plant &
Machineries imported from known textile machinery manufacturers like
Rieter (Switzerland), Savio (Italy), Mayer & Cie (Germany), Elitex
(Czechoslovakia). It has also installed Plant & Machineries purchased
locally from manufacturers like Laxmi Machine Works.

The first unit was set-up in the year 1993 at Hamirgarh, Bhilwara
(Rajasthan) for manufacturing coarse cotton yarns. It installed two
open-end spinning machines with 192 Rotors each aggregating 384
Rotors which were acquired from Elitex, Czechoslovakia under EPCG
scheme. The total capital outlay towards the project was Rs. 285.50
Lacs, which was financed by way of a Term Loan of Rs. 150 Lacs from
RIICO, Equity Share Capital of Rs. 86 Lacs from Promoters, Unsecured
Loans of Rs. 14.50 Lacs from Promoters and State Subsidy of Rs. 35
Lacs. The commercial production of this project was commenced in
November 1993.

Subsequently in the year 1994, it undertook our first expansion
project involving installation of one Autoconer Machine of 216 Rotors
from Schlafhorst AG & Co., Germany and increased the number of
Rotors to 600 . The total capital outlay towards this project was
Rs. 400 Lacs, which was financed by Rupee Term Loan of Rs. 84
Lacs and Foreign Currency Loan of DM 905,000 equivalent to Rs.185
Lacs from ICICI, Equity Share Capital of Rs. 20 Lacs and Rs. 56 Lacs
from RIICO and Promoters respectively and Internal Accruals of Rs. 55
Lacs. The commercial production of this expansion project was
commenced in May 1995.

It undertook our second expansion project in the year 1996-97. The
expansion project involved acquisition of two Autoconer open-end spinning
machines of 240 Rotors each from Schlafhorst AG & Co., Germany,
increasing our capacity to 1080 Rotors. The total capital outlay towards this
project was Rs.1,100 Lacs, which was financed by Foreign Currency Loan
of DM 13,50,000 equivalent to about Rs.324 Lacs & Rupee Term Loan of
Rs. 336 Lacs from IDBI, Equity Share Capital of Rs. 200 Lacs from Promoters
and Internal Accruals of Rs. 240 Lacs. The project was implemented ahead
of schedule and commenced commercial production from 05th October, 1997
as against the expected schedule of January 1998.

It undertook the company's r third expansion in the year 1998-99. The expansion
scheme involved two open end spinning machines of 384 Rotors from Elitex,
Czechoslovakia. The total capital outlay of the project was Rs.190 Lacs,
which was financed by way of Term Loan of Rs.140 Lacs from RIICO, and
Rs. 50 Lacs from Internal Accruals. The expansion was carried out mainly for
balancing of excess capacity available at preparatory stage. The machines
were installed in September, 1998.

Based on growth in export performance, The Company was converted into 100%
Export Oriented Unit (EOU) from 15th January 1999. It has been awarded
export house status by Government of India in the year 1999.

It undertook our fourth expansion project in the year 1999. This expansion
project involved installation of 14,112 spindles to produce combed and carded
cotton yarns of 20s to 40s count. At this expansion phase, it also went for
forward integration programme by installing 7 knitting machines. The total capital
outlay of the project was Rs. 5,018 Lacs. The project was financed by way of
Rupee Term Loan of Rs.3,601 Lacs from the following banks: IDBI - Rs.1665
Lacs, IOB - Rs.775 Lacs, OBC - Rs. 608 Lacs and PNB - Rs.553 Lacs; Equity
Share Capital of Rs.850 Lacs from Promoters, Unsecured Loan of Rs.50 Lacs
from Promoters and Internal Accruals of Rs. 517 Lacs. The entire project was
financed under Technology Upgradation Funds Scheme (TUFS) of Government
of India. The commercial production of this expansion project was commenced
on 1st April 2002. In order to augment long-term working capital requirement of
our Company arising due to this expansion project, IDBI sanctioned financial
assistance of Rs.150 Lacs by way of subscription to 1,50,000 13.5% Cumulative
Redeemable Preference Shares of Rs.100 each, which was subsequently
reduced to 10.25% on 1st June 2004.

It undertook our fifth expansion project in the year 2003.The total capital
outlay of this project was Rs. 3,550 Lacs. This expansion project envisaged
addition of 13,104 spindles and 6 knitting machines. The project was financed
by way of Equity Share Capital of Rs. 700 Lacs from Promoters; Internal Accruals
of Rs. 400 Lacs and Term Loan from IDBI, OBC, PNB and IOB aggregating
Rs. 600 Lacs, Rs. 400 Lacs, Rs. 750 Lacs and Rs. 700 Lacs respectively.
This project, which was expected to be completed by September 2005, was
actually completed before time in November 2004.

It undertook Its sixth expansion project in February 2005. This expansion
project involved addition of 408 Rotors and 2 knitting machines. The capital
outlay of this project was Rs.250 Lacs, which was financed from internal accrual.

Thus, within span of 12 years,it has increased the company's production facilities from
384 Rotors in year 1993 to present production facilities of 27216 spindles, 1872
Rotors and 15 knitting machines.

The company's products are suitable for applications such as apparels, undergarments, Terry
Towels, Denims, Medical Fabrics, Furnishing Fabrics and Industrial Fabrics. The Company's
products are presently sold in the domestic market as well as exported to various
countries like Australia, Bahrain, China, Colombia, Egypt, Israel, Italy, Korea,
Mauritius, Russia, Poland, U.K., U.S.A., etc. Some of our major international
customers are Arad Towels and SVAV-OR Ltd. (Israel), EDPA (USA), Gobind & Co.
and City Styles (LEIC) Ltd. (UK), Emi-Maglia S.p.a. (Italy), Hong Kong Shanghai Knit
Factory Ltd. (Mauritius), Zheing Feng Weaving Factory (China), OOO Transexport
(Russia), Sharda Europe SP. ZO.O (Poland), MT Sullivan and Co. (Australia).

The company's major Indian customers includes Arvind Mills, Adani Exports Ltd., Modern Denim Ltd., Maral Overseas Ltd., Ginni International Ltd., Vanasthali Tex. Ind. Ltd., Datt
Mediproducts Ltd., Sheena Textiles Ltd., Lahoti Overseas Ltd. and L. M. Sagar
Exports.

2009

- Nitin Spinners Limited has informed that: 'The IDBI Bank Ltd. vide its Letter No. SS-1C9.53/596/Nom.8 dated 07-02-09 has appointed Shri Saumya Sanker Banerjee, General Manager as Nominee Director of our Company in place of Shri B.P. Singh w.e.f. 21-02-2009.'
 
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