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Vardhman Holdings Ltd. Company History and Annual Growth Details

1962 - Vardhaman Spinning and General Mills was incorporated on 27th
December, at Punjab. The main object of the company is to
manufacture cotton spinning and line manufacturing, staple fibre
yarn, machine combing and recombing of all types of fibres and
the manufacture of Mild high carbon and spring steel

1970 - Equity shares subdivided. In July 1972, 20,000 Pref. and
4,00,000 No. of equity shares issued. 57,000 No. of equity
shares reserved for directors and the balance offered to public.

1975 - Issued 1,00,000 No. of equity shares to IFCI and 80,000 No. of
equity shares to IDBI on conversion of loan on 1.7.1975.

1976 - 4,39,400 bonus equity shares issued in prop. 1:2.

1982 - During February, the Company issued 2,00,000-13.5% convertible
secured debentures of Rs 100 each at par with additional interest
of 1% when the company declares a dividend of 18% or more.

- Rs 18 from each debenture of Rs 100 is convertible into one
equity share of Rs 10 each at a premium of Rs 8 per share on 1st
January, 1983 (Conversion right is already exercised.) The
balance amount of Rs 82 per debenture is redeemable in four equal
annual instalments of Rs 20.50 each commencing from the expiry of
the 8th year from the date of allotment of debentures. In the
event of a bonus issue prior to 1st January, 1983, the
entitlement to shares will get augmented and the premium payable
on conversion will stand reduced proportionately.

- 13,18,200 bonus equity shares issued in prop. 1:1 during
December. 4,00,000 No. of equity shares issued to the
debentureholders in January 1983 of which 2,00,000 shares issued
on account of part conversion of debentures and the balance
2,00,000 by way of bonus shares.

1985 - The Company proposed to replace 8,216 old spindles by new ones
and also add on a few balancing equipments in the dye house. The
necessary approval was received for setting up an industrial unit
with 300 looms and process house.

1986 - The Company launched another modernisation scheme for its
spinning unit at Ludhiana. The Company then launched one more
modernisation scheme.

- The Company issued 3,00,000-15% secured non-convertible
redeemable debentures of Rs 100 each on private placement basis
to the Life Insurance Corporation of India, the Unit Trust of
India and General Insurance Corporation to meet the working
capital needs.

1987 - The Company received a letter of intent for setting up a 6,000
worsted spindles project at Mandideep in Madhya Pradesh.

- 20,000-9.5% pref. shares were redeemed.

1989 - The Company launched one more modernisation programme, for the
Company's spinning as well as the steel unit.

- The Company proposed to expand the capacity of the unit by about
30,000 spindles.

- The Company was granted a letter of intent for the setting up a
weaving unit in Himachal Pradesh with a capacity of 300 tonnes.
Effective steps were being taken for the implementation of the
first phase by installing 72 airjet weaving machines.

1990 - Production at the Steel Unit was affected by labour unrest for
about three months.

- The Company was granted a letter of intent for setting up a 100%
EOU in Himachal Pradesh with a capacity of 25,000 spindles.

1993 - The Company undertook to set up a dye house for processing of

- The Company made a preferential issue of 15,00,000 warrants
entitling 15,00,000 No. of equity shares of Rs 10 each to its

- During January, the Company issued 15,94,110-14% secured
redeemable partly convertible debentures of Rs 300 each of which
15,18,200 debentures were issued to shareholders on rights basis
in proportion 1 deb. : 2 equity shares held (all were taken up).
Another 75,919 debentures were offered to employees on an
equitable basis (2,310 shares taken up).

- Part A of Rs 150 of the face value of each debenture was
converted into 1 equity share of Rs 10 at a premium of Rs 140 per
share after 6 months from date of allotment of debentures.

- Part B of Rs 150 of the face value of each debenture was to be
redeemed at par in 3 annual instalment of Rs 50 each at the end
of 7th, 8th & 9th year from the date of allotment of debentures.

1994 - 92,56,400 bonus equity shares issued in prop. 2:1.

1995 - The performance of the Company suffered due to the high prices of
cotton which kept the margins under pressure.

- The Company undertook to enrich its product-mix and also
diversify its market base, by new development of products based
on capabilities and skills created.

- 6,90,000 No. of Equity shares allotted against warrants which was
earlier issued to promoters and their associates on preferential
basis. Another 13,80,000 Bonus Equity shares issued in prop. 2:1
on 30.9.95.

1996 - Introduction of new value added products. The Company proposed
to change the location of the 100% EOU project having capacity of
50,000 spindles from Pithampur to Baddi with a capacity of 25,200
spindles in the first phase was expected to be commissioned
during 1997-98.

- The Company also proposed to expand weaving operations by adding
36 looms.

1997 - The Company proposed to set up a fabric house in the name and
style of 'Auro Textiles' at Himachal Pradesh in technical
collaboration with 'Tokai Senko' of Japan with a capacity of 30
million metres per annum.

- Vardhman is also setting up a 100 per cent EoU at Baddi with
installed capacity of 25,200 spindles.

- The company is also taking up expansion programme of its weaving
division by installing another 36 looms. The expansion will be
operational by November.

1998 - VSGM has maintained its capacity utilisation at about 97 per

- Vardhman Spinning and General Mills (VSGML), the flagship
company of the Ludhiana-based Vardhman group, issued partially
convertible debentures (PCDs) in December 1992.

- The company set up a 100 per cent EoU of 25,000 spindles, which
was commissioned in March. With this, the total capacity stands
at 1.48 lakh spindles.

- The company plans to set up a fabric process house in Baddi with
technical collaboration from Tokai Senko of Japan.

1999 - The company has a strong market position in the yarn business,
sound fundamentals and an impressive financial track record.

- The company has been implementing projects to enhance its


- Industrial Development Bank of India (IDBI) has withdrawn the nomination of Mr. B K Batra from the Board of the Company and has appointed Mr. C V Ramani as its nominee director on the Board of the Company in his place.

-Mr. S P Oswal appointed as Chairman & Managing Director of the Company

-Board approves delisting of securities from Delhi Stock Exchange


-Vardhman Spinning & General Mills Ltd has informed that the Equity Shares of the Company has been delisted from the Delhi Stock Exchange Association Ltd, New Delhi w.e.f. March 31, 2004.


- Vardhman Holdings Ltd has appointed Shri. O P Sharma as an additional director on the Board of the Directors with effect from July 24, 2009.