Vertex Spinning plans major expansion / to focus on Exports

Vertex Spinning Ltd has announced that the Company has undertaken a major expansion programme, whereby it has updated the Plant and Machinery and completed 25,000 Spindles expansion programme at existing Unit at Pithampur, Madhya Pradesh.

After the completion of this expansion of acrylic spinning mill, the Company became one of the top three Acrylic Blanket Manufacturing Mills in the world and it has established itself as a strategically located quality supplier of acrylic blanket to the whole of the country, Africa, USA, UK, Australia, Canada and all Asian Countries including Middle East.

To start Cotton spinning the Company has acquired 100 Acres of Land and has started construction activity at Nardhana Industrial Area, Dist. Dhule, Maharashtra. The new Mega Project is at a cost of Rs 512 Crores. The company has obtained license from Govt. of India for Cotton Spinning of 1,60,000 Spindles. The Directors of the Company expected to commence its production of Phase-I of 80,000 Spindles by March 2007.

The company started Exporting its new products of Acrylic Mink Blanket under the brand name "DIANA" during the current year. Though Spain is considered as market leader of Mink Blanket in the World, there is heavy demand for Mink Blanket of the Company from Spain and UK, resulting into capacity utilisation of the Company’s production for next 2 years, whereby the profitability will increase substantially.

After completion of Cotton Spinning Project the company is expected to earn a gross revenue of Rs 227.32 crores and a profit after tax amounting to Rs 51.11 crores. Extensive efforts are being made to revamp and upgrade technology to enable the company to take advantage of the changing business opportunities.

Source : Equity Bulls

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