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Vardhman Textiles Ltd. Company History and Annual Growth Details

YEAR EVENTS
1973 - The Company was incorporated on 8th October. The Company was
promoted by Vardhman Spinning and General Mills Ltd. The main
objective of the Company is manufacturing and spinning of cotton
yarn, polyester yarn, staple yarn, acrylic yarn, acetate yarn
and sewing thread.

1975 - In Dec., 14,99,989 No. of Equity shares and 19,990-11% Pref.
shares issued: 5,99,989 No. of Equity shares reserved and
allotted to Vardhman Spinning & General Mills, Ltd, and
9,00,000 No. of Equity shares and 19,990 Pref. shares offered
to the public. Pref. shares redeemable as follows: 1 share
during 22-10-1985/88, 9 shares during 31-3-1987/90 and 19,990
shares during 2-1-1988/91.

1978 - The Company undertook to set up another textile mill with a
capacity of 25,000 spindles at Malarkotla in Sangrur district,
another backward area in Punjab.

1980 - 7,50,000 Right Equity shares issued at par in prop. 1:2.
4,10,000 No. of Equity shares allotted to financial institutions
on conversion of loans.

1982 - The installed capacity of textile mill in Malarkotla Unit rose to
22,768 spindles by the end of the year. The balance 2,232
spindles were installed.

- 10,64,00 Bonus Equity shares issued in prop. 2:5.

1983 - 7,22,400 No. of equity shares issued to financial institutions
on conversion of loans.

1984 - The Company entered into an agreement with Punjab State
Industrial Development Corporation Ltd. (PSIDC), for setting
up a joint sector project to manufacture printing and writing
paper with a capacity of 100 tonnes per day. A new company
was to be promoted jointly by the Company and PSIDC for
this purpose.

- The Company issued 15% non-convertible debentures for Rs. 250
lakhs as rights to both equity and preference shareholders for
augmenting long term working capital requirements.

- 2,00,800 No. of equity shares issued to financial institutions
on conversion of loan (including 80,320 bonus shares).

1985 - The Company formulated a modernisation scheme with a view to
equip the mill with the latest technology.

1986 - The Memorandum of Understanding/Agreement was entered into
between the Company and PSIDC for setting up a project in a joint
sector for the manufacture of 12,000 tonnes per annum of
polypropylene/filament yarn.

- With a view to providing a complete package of sewing thread,
the company entered into a joint venture with M/s. Barbour
Campbell Group Ltd., Ireland, in the name of Barbour Vardhman
Threads Pvt. Ltd. Industrial synthetic thread, the product of the
joint venture to be manufactured at Baddi, H.P. finds special
application for shoe industry and leather garments. The Company
has secured rights to market the products in countries like
Nepal, Bangladesh, Pakistan etc.

- A letter of intent was received for setting up a weaving unit
with a capacity of 300 looms in the State of Madhya Pradesh.
Viability of this unit was being examined.

- Mohta Industries Ltd. (MIL), a sick unit registered with BIFR
under 'Sick Industrial Companies (Sp. Provisions) Act, 1985,
submitted a proposal to the Company for its merger. The
Company responded positively in principle, provided a viable
scheme for MIL is framed and approved by financial institutions.

1987 - A new sewing thread introduced in the market under the brand
name of 'TORA' was well received.

1988 - A letter of intent was obtained for setting up an export oriented
spinning unit with a capacity of 25,000 spindles. The proposal
of modernisation and expansion for steel unit was under
implementation.

- The Company undertook to set up a unit at Hoshiarpur for the
manufacture of sewing thread.

- By virtue of the Scheme Amalgamation approved by the Board for
Industrial and Financial Reconstruction (BIFR) 8,25,006 No. of
Equity shares of Rs. 10 each of Punjab Mohta Polytex, Ltd. held
by erstwhile Mohta Industries, Ltd. became the property of the
Company.

- By virtue of order dated 28.11.1988 of BIFR, the entire assets,
liabilities and obligations of every kind as on 1st April, of
Mohta Industries, Ltd. as per the Scheme of Amalgamations moved
by both the companies, were taken over by the Company. In
Consideration of the above, one fully paid equity share of Rs. 10
each of the Company was allotted against ten fully paid equity
shares of Rs. 10 each of Mohta Industries, Ltd.

- On 20.10.88, 1 - 11% Pref. share was redeemed. 1,35,916 shares
were issued.

1990 - The Company undertook to set up another unit with a capacity of 6
MT per day at Baddi (H.P.).

- All Pref. shares redeemed in 1989-90. 19,45,374 bonus shares
issued in prop. 2:5 in 1990/91.

1992 - The Expansion & Diversification unit was commissioned.

- The 40,000 tpa rolling mill was commissioned in September 1993.

- The company also undertook modernisation of SMS division of
Vardhman Special Steels.

1993 - The year the steel division undertook to manufacture special
alloy steels in rolled products.

- The company undertook to set up a gassed and mercerized yarn
project at Hoshiarpur with an installed capacity of 3.5 tonnes
per day. The company entered into technical collaboration
agreement with a Korean company for the said project.

- The company issued 51,16,167-14% secured redeemble partly
convertible debentures of Rs. 220 each on Rights basis in the
ratio of 2 debentures: 3 equity shares held. Each debenture was
converted into one equity share at a premium Rs. 100 per share.

- The company issued 25,00,000 warrants entitling 25,00,000 equity
shares of Rs. 10 each with detachable 12% secured redeemable non
convertible debentures of Rs 300 each to promoters on
preferential basis.

- 51,16,167 No. of equity shares issued (prem. Rs. 100 per share)
on conversion of PCDs.

1994 - The modernisation plan of steel division at Ludhiana was
implemented by installing a modern energy efficient new furnace
and continuous casting system to enable a production of 1.20
lakhs tonnes of billets.

- A portion of the 20,160 spindles at Malerkotla unit was converted
into a 100% EOU to meet the increasing requirements of
international markets.

- The company entered into a joint venture agreement with M/s.
Marubeni Corporation & Toho Rayon Co. Ltd., Japan for setting up
a 100% EOU to manufacture cotton yarn with a capacity of 25,000
spindles at Baddi, HP. In the joint venture to be known in the
name of VMT Spinning Company Ltd.

- The company signed a technical collaboration agreement with M/s.
Kawasaki Heavy Industries Ltd. & Manubeni Corporation for the
transfer of technical know-how for manufacture of acrylic fibre
with a capacity of 30,000 TPA with two manufacturing lines.

- 1,19,24,977 bonus shares allotted in prop. 1:1.

1995 - The Company entered into a joint venture agreement with Japan
Exlan Co. Ltd. and Marubeni Corporation of Japan for setting up
an acrylic fibre project for manufacture of 16,500 TPA acrylic
fibre. The project was being implemented in Vardhman Acrylics
Ltd.

- The Company issued 14%-40,00,000 preference shares of Rs. 10
each. These are redeemble earliest by 30.6.1997.

- 9,50,000 No. of equity shares issued (prem. Rs. 258 per share)
to Warrant holders on conversion. 9,50,000 bonus shares issued
to prop. 1:1 to the said Warrant holders.

- 5,00,000 preference shares issued during the year.

2003

-Company law Board passes an order in the compromise proceedings in the matter of Enakshi Investments Pvt Ltd. and others Vs Vardhaman Polytex Ltd.

-Decides to disinvest part of its equity holding in Vardhaman Acrylics.

2004

-Mahavir Spinning Mills Ltd. acquires 2,237,054 shares of Vardhman Acrylics Ltd. amounting to 2.06%, increases its stake in Vardhman Acrylics Ltd. to 38.85%
 
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