H.P. COTTON TEXTILE MILLS LTD.

H.P. COTTON TEXTILE MILLS LTD.

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Company Overview
H.P. Cotton Textile Mills is an India-based company engaged in the manufacture and trade of yarns and threads in India and abroad. The company, with registered head office located in Hisar, India, was established in 1985. The company is listed on the Bombay Stock Exchange.
H.P. Cotton Textile Mills is one of the largest producers and exporters of 100% cotton sewing thread, cotton and glaced threads & cotton gassed (singed) and mercerised yarns in India. Its gazed and mercerized yarn is used for knitting, weaving, lace material, fashion garments, T-Shirts, and socks; and industrial thread, which is used in stitching, kite flying, and embroidery. Its sewing threads come in fashionable bright colors and are resistant against washing and light, and are offered in different sizes and shapes. The crochet and hand knitting yarns are made of long fiber cotton and are used for knitting curtains and bed covers, which are offered in brilliant, high luster and resistant colors. The company’s industrial threads are made from high quality cotton with high resistance and extra long fiber. The products are offered in different shapes and sizes and used for stitching, embroidery and kite flying. H.P. Cotton Textile produces approximately six million kg. of ring spun, 100% sewing thread silk and threads per annum, ranging from 10’s to 60’s counts in single and multiple, cabled and folded combed quality. The company markets its products in India and exports to North America, South America, Europe, Southeast Asia, Middle East, Africa and Oceania.
Business Summary
The main objective of the Company is to manufacture cotton and/or synthetic yarn/thread.
Description and history
The main objective of the Company is to manufacture cotton and/or synthetic yarn/thread.

The Company was incorporated as a Public Ltd. Company on 3rd September, and the Certificate of Commencement of Business was obtained on 5th January, 1982. The Company was promoted by Arjun Das Agarwal, Kashmiri Lal Agarwal in Association with the Haryana State Industrial Development Corporation, Ltd.
– The Company set up a sewing thread cum spinning mill with an installed capacity of 12,480 spindles for the manufacture of cotton sewing thread and industrial yarn of different colours for sewing, weaving carpet and canvas belting, filter cloth, tarpaulins, taper, fishing nets, canvas cloth and industrial ropes. A major part of the machinery was obtained from Lakshmi Machine Works Ltd., Coimbatore.

In 1985
– 7,07,800 shares taken up by promoters, directors, etc. and 2,12,000 shares allotted to HSIDC. 22,80,000 shares then issued at par of which 5,12,200 to promoters, directors etc. and 2, 67,800 shares to HSIDC were reserved and allotted. The balance 15,00,000 shares were offered for public subscription during October 1984. Only 2,95,400 shares were taken up. The balance 12,04,600 shares devolved on the underwriters (6,42,000 shares of IDBI and 2,81,100 shares each on IFCI and ICICI).

In 1989
– The Company undertook to expand its capacity from 13,728 ring spindles to 24,980 ring spindles.

In 1991
– The Company installed another 11,232 spindles bringing the total installed capacity to 24,960 spindles. Commercial production on the newly added capacity started only during November – December. Besides, a few balancing machinery was also added to the thread division to improve the product-mix and range of products.

In 1992
– The Company undertook scheme of backward and forward integration to increase the thread manufacturing capacity by around 80%.

– 6,10,000 equity shares allotted at par to promoters, etc. in conversion of their unsecured loans.

In 1993
– The Company successfully implemented expansion scheme.

– 62,250 equity shares forfeited.

In 1996
– The Company has chalked out a programme for modernisation and Balance of equipments and testing gadgets.

Business Line
Engaged in the manufacture and trade of yarns and threads in India and abroad
Subsidiary

Advisor
M/S A.K.ASSOCIATES
IPO date
3/5/2001
US SIC Code
2299
Company Address
1E/12, Jhandewalan Extension

City province or state postal code
11 00 55, NEW DELHI
Phone: +91 11 23636663
Fax: +91 11 23610076
Country address: INDIA
Website url: www.hpthread.com