Eastern Silk gets amalgamation approval

27 Dec '05

3 min read

Eastern Silk Industries (ESI) Ltd is set to reap the benefits of integrated operations now that the court approvals are in place for the amalgamation of Sstella Silks Ltd and Eastern Jingying Ltd with ESI.

The turnover and net profit of the combined entity for the year ended March 31, 2005 stands at Rs 347.48 crore and Rs 25.53 crore respectively.

The turnover, on consolidated basis, as on September 30, 2005 works out to Rs 203.62 crore against Rs 180.62 crore in the corresponding half of 2004-05.

The paid-up equity capital of the company after merger will be Rs.13.49 crore divided into

1, 34, 90,524 shares of Rs.10 each.

The machine-made fabric capacity of the company after amalgamation will be about 14 lakh metres per annum.

Yarn capacity will be 800 tonnes per annum.

ESI today imports nearly 70 per cent of its annual yarn requirement of 800 tonnes per annum from China while the balance comes from its own spinning mill.

Part of its fabric requirement is met by Sstella Silk while Eastern Jingying supplies silk yarn.

Elaborating on the company's growth potential, S S Shah, Chairman of ESI Ltd said: 'They are gradually shifting from handloom fabrics to machine-made fabrics.

For further value addition, they are setting up state-of-the-art facilities at Bommasundra for manufacture of made-ups and fashion fabrics for the highly discerning buyers in the USA and Europe.

Full benefits of their expansion plans will start accruing from 2006-07.

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