Himachal Fibres Ltd. announces strategic merger with Shiva Texfab Ltd

Himachal Fibres Limited, a BSE listed Company (HIMFIBP | 514010 | INE723D01021), has, in principally, decided to merge the businesses of Himachal Fibres Ltd. and Shiva Texfab Ltd ('STL'), subject to finalisation of various modalities and approval of relevant authorities.

This strategic step marks a significant step forward in the journey of Himachal Fibres Ltd. to enter into manufacturing of innovative and sustainable products from recycling of waste plastic material.

About Shiva Texfab Ltd.

STL was established in the year 1997 and is at the forefront of eco-innovation. STL stands as one of India's largest integrated manufacturing facilities of products from recycling of waste PET bottles, with its factory spread across 100 acres in Ludhiana, Punjab. The company significantly contributes to clearing and recycling large quantities of plastic bottles daily, yielding a diverse range of beautiful, durable, and high-quality products.

STL is engaged into transforming waste plastic bottles into sustainable fashion. Its wash line has a present capacity to handle 150 metric tons daily. After several processes are undertaken on waste plastic bottles, various skin-friendly products are manufactured by STL. The different product range along with its present capacities are as under:

A. Staple Fibre: Waste plastic bottles, after its washing & cleaning, are converted into flakes. Melted flakes are shaped into different types of fibre with a capacity of 125 metric tons daily;

B. Spun Yarn: Fibre is converted into yarn with a capacity of 60 metric tons per day (approx.). It has 60,000 spindles.

C. Filament Yarn: Melted flakes are shaped into yarn, and dyed using state-of-the-art dope dyed technology, saving water and chemicals. Filament yarn production capacity is at 24 metric tons daily;

D. Anaura: Anaura is a specialised fabric manufactured by STL, with the capacity of 3,20,000 square meters daily, by using in-house produced spun and filament yarns;

E. Non-woven: In technical textile division, STL manufactures various types of carpets and other non-woven products. There is production capacity of 50,000 square meters per day of carpets and 20 tons of fabrics per day for leather backing and shoe lining;

F. Granules - Bottle caps are recycled into granules with a daily capacity of 20 metric tons which are sold by STL. These granules has an application for crafting plastic furniture and vegetable crates;

Commenting on the above merger, Mr. Akhil Malhotra, Chairman of Himachal Fibres Limited said - "Merger of these two companies is a significant milestone for Himanchal Fibres in paving its way to enter into manufacturing of innovative & sustainable products from recycling of waste plastic material. STL has established infrastructure, capabilities, manufacturing capacities, immense experience, ongoing business and huge potential for enormous growth ahead without much of capex. Therefore, we are confident that this step will bring immense value to the shareholders of Himachal Fibres shareholders.

Shares of HIMACHAL FIBRES LTD. was last trading in BSE at Rs. 42.46 as compared to the previous close of Rs. 43.32. The total number of shares traded during the day was 500322 in over 170 trades.

The stock hit an intraday high of Rs. 43.99 and intraday low of 42.46. The net turnover during the day was Rs. 21309139.00.

Source : Equity Bulls

Keywords

HIMACHALFIBRES INE723D01021 Merger ShivaTexfab