Towels India Exports Ltd - Stock Valuation and Financial Performance

Towels India Exports Ltd. was incorporated under the Companies Act, 1956 on August 7, 1985 as a Private Limited Comp. & was converted into Public Limited Comp. on 18th October, 1993. The Comp. set up its existing plant for manufacture of Cotton Terry Towels at Lote Purshuram, Dist. Ratnagiri, Maharashtra during 1988-89 & commercial production was started on January 6, 1989.

The company promoted by Shri Kulin H. Kothari belongs to Padamshi Meghji group, which is in business since 1931. The Comp. has been incorporated to carry on the business of manufacture & export of Cotton Terry Towels. The present manufacturing operations are carried out at E-26, M.I.D.C., Lote Purshuram, Ratnagiri District, Maharashtra. The Manufacturing unit consists of preparatory, weaving, processing, & packing of finished towels. The unit was the first of its kind in India in organised sector. The unit was set-up with the installed capacity of 800 TPA for manufacturing of Cotton Terry Towels. The unit has its own processing facility with dyeing Jiggers.

The manufacturing capacity of Cotton Terry Towels was increased from 800 TPA to 1400 TPA with Processing & Printing facility under the Expansion-Cum-Forward Integration Project. This project is being set-up at A-4, Chincholi Industrial Area, M. 1. D. C., Taluka North Solapur, District Solapur, Maharashtra. The Processing & Printing facility includes bleaching, stentering, Shearing & printing of Cotton Terry Towels, resulting into value addition of finished product manufactured by Company. The installed capacity of Shearing is 2100 TPA & that of Printing is 560 TPA. This project is in advanced stage of completion. Commercial production of expanded capacity of the company commenced in September, 1994.

The Company  has been engaged in 100% exports of Cotton Terry Towels since inception. The Company is the winner of Bronze Trophy, for excellent export performance [Export 95.41% of total productions] for year 1991-92 & winner of Silver Trophy for being highest exporter [Export 99% of total productions] for year 1992-93 awarded by TEXPROCIL as a Manufacturer - Exporter in Made-ups category. Exports Awards for year 1993-94 are yet to be announced.

The Company enjoyed approximately 20% of Country exports to U.S.A. since the year 1991-92. Cotton Textile Export Promotion Council distributes export quotas based on numerous parameters. One of these parameters being 'Export Performance in two years proceeding to the previous year ' [PPQs]. The Company  is one of largest holders of quota based on past performance for U.S.A. market.