Banswara Syntex- a saga of growth in adversities

25 Mar '06

2 min read

R L Toshniwal, Founder and Chairman of Banswara Textiles in a journey spreading over 25 years has been the guiding factor to take Banswara Syntex from Rs 3 crore to a Rs 350 crore company.

Toshniwal set up a factory in Banswara, Rajasthan in 1978, to manufacture man-made fibre yarn with an initial investment of Rs 16 Lakh of which Rs 11 lakh was contributed by him and Rs 5 lakh by other investors.

IFCI forwarded Rs 45 lakh for working capital, and Rs 1.22 crore was raised through public issue.

Banswara Syntex is a joint venture with the Government of Rajasthan starting off with 12,500 spindles and making profits in its very first year of operation.

Toshniwal started two other companies — Banswara Textiles and Banswara Fabrics. In 1982, these companies reported heavy losses due to power cuts in Rajasthan.

In 1994, Banswara Syntex expanded and the current facilities stand at 1.12 lakh spindles.

The textiles and fabrics companies were merged into Banswara Syntex in 2005-06, and also decided to enter garment making, Toshniwal said.

The company set up its trouser manufacturing facilities in Daman producing 50,000 trousers which were further expanded to produce further 1 lakh pieces.

The company exports 50 percent of its garments and rest is supplied to brands like Park Avenue, Westside and Lifestyle to be sold under their own labels.

The company achieved a 14.3 percent rise in topline at Rs 77 crore in the third quarter of financial year 2006 and a 230 percent rise on its bottom line to Rs 2.3 crore in the same period.

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