Vardhman Textiles Ltd
Vardhman Textiles Ltd (VTL)

Vardhman Textiles Ltd (VTL)

₹337.40.94%

Key Stats

₹324.35
Day's Price Range
₹338.95
₹245.5
52-Week Price Range
₹576
1 Month Return2.23 %
3 Month Return22.88 %
1 Year Return-9.78 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 70
7.78
EPS
Rank 45
₹42.95
BVPS
Rank 63
₹271.02
Dividend Yield
Rank 82
1.35%
ROE
Rank 78
24.53%
Price To Book Ratio
Rank 106
1.23
Debt To Asset
Rank 420
0.32

Company Information

Vardhman Textiles Limited formerly Mahavir Spinning Mills Limited was incorporated on October 8 1973. The Company is one of the leading textile manufacturers of India offering the largest range of textile products across fibre acrylic yarn and fabrics. Headquartered in Ludhiana it is one of the leading textile conglomerates of India. Presently it is engaged in manufacturing of cotton yarn synthetic yarn and woven fabric. The Company expanded its product offerings and entered into strategic alliance with leading global textile players to gain access to stateoftheart technologies. Yarn constitutes the largest business for Vardhman Textiles with over 10.85 lakhs spindles and has a capacity to manufacture over 561 MT of yarn per day. Vardhman Textiles is one of the very few vertically integrated fabric manufacturers in India producing fabrics for both tops and bottoms in the apparel segment serving large retailers across USA Europe Asia and other emerging nations. The company has pioneered the development of a wide variety of fabrics. The companys fabric division has a weaving capacity of over 220 million meters per annum and processing capacity over 175 million meters per annum across a wide specialty fabrics range. It presently has 17 manufacturing units and exports are spread across more than 55 countries across the globe. In 1965 the Vardhman Group started its first manufacturing unit at Ludhiana in the state of Punjab with 6000 spindles. During the year 19881989 Mohta Industrial Limited MIL amalgamated with Mahavir Spinnig Mills Ltd with effect from April 1 1989 and in the same year the company completed the first phase of its modernization for both its spinning units at Hoshiarpur and Malerkotla and steel unit at Ludhiana. During the same year the company added another 24000 spindles to its at Malerkotta with total cost of about RS.21 000 crores. During the year 19921993 the company expansion of sewing Thread capacity undertaken at existing site at Hoshiarpur with capacity outlay of Rs. 7.30 crores.During the year 19981999 the company the third 100 EOU at Mandideep with an installed capacity of 25000 spindles started its commercial production. During the year 20002001 the company increased installed capacity of Spindles from 212568 Nos to 213496 Nos. During the year 20012002 the company further increased installed capacity of Spindles from 213496 Nos to 243640 Nos. Also the company increased installed capacity of Rolled Product from 40000 Nos to 66000 Nos.During the year 20042005 the company increased installed capacity of Spindles from 310296 Nos to 468688 Nos and in the same year it further increased installed capacity of Rolled Product from 66000 to 80400. During the year 20052006 the company invested Rs. 338.88 in expansion modernization and debottlenecking activities. And in the same year the company implemented two new expansions in Madhya Pradesh under the names Vardhman Yarn a spinning project and Vardhman Fabrics an integrated Fabric project. During the year the company increased installed capacity of Spindles from 468688 Nos to 477920 Nos.During the year 20062007 the company name was changed from Mahavir Spinnig Mills Ltd to Vardhman Textile Limited and in the same year it increased the installed capacity of Spindles from 477920 Nos to 543432 Nos. During the year 20072008 the company commissioned a new yarn unit vardhaman yarns at Satlapur MP with initial capacity of 30000 spindles and in the same year the company textile unit started in Vardhaman Fabrics at Budni MP. During the year the company acquired 11700000 10.78 and 3300000 3.04 equity shares of VAL from its foreign collaborators namely Marubeni Corporation Japan and Japan Exlan Company Ltd. During the year 200910 6080 spindles became operational at Vardhman Yarns Satlapur MP a unit of the company thus taking the total operational capacity of the said unit to 176704 spindles as on September 30 2009.The Board of Directors of Vardhman Textiles at its meeting held on 7 May 2010 considered and given an inprinciple approval for the demerger of the steel business of the company in consultation with KPMG the external advisors appointed in this regard. The Board also constituted a Committee of Directors to finalise the Scheme in consultation with the companys advisors for taking necessary action for completing the requirements in this regard.On 16 March 2011 Vardhman Textiles informed the stock exchanges that the certified copy of the Order of the Punjab Haryana High Court approving the Scheme of Arrangement has been filed with the Registrar of Companies at Chandigarh on 15 March 2011 and the Scheme has become effective. As per the Scheme the steel business undertaking of Vardhman Textiles stands vested in Vardhman Special Steels Limited with effect from the Appointed Date i.e.1 January 2011. As per Clause 5.1 of the Scheme the shareholders of Vardhman Textiles Limited would be allotted 1 share of Vardhman Special Steels Limited for every 5 shares held in Vardhman Textiles Limited whose names are registered in the register of members of Vardhman Textiles Limited as on the Record Date to be fixed for the purpose.In 2011 the Vardhman group entered into garment business with manufacturing of formal shirts for men. In 2013 with the increase in spindle capacity to 10 lakh Vardhman reached the highest spindle capacity in the country. Vardhman Textiles commissioned the first phase of its printed fabrics line in March 2016.On 1 September 2016 Vardhman Textiles informed the stock exchanges that as per terms of Share Sale and Purchase Agreement SPA the company has sold 2.28 crore equity shares in Vardhman Yarns and Threads Limited VYTL to American Efird Global LLC AE Global against a total consideration of Rs 412.99 crore. Post this transaction the company now holds 62.70 lakh equity shares in VYTL aggregating to 11 and AE Global holds 5.07 crore shares in VYTL aggregating to 89 of the issued subscribed and paidup equity shares capital of VYTL. Consequently VYTL has ceased to be a subsidiary of the company. In terms of the transaction documents Vardhman Textiles will have a put option and AE Global will have call option on the remaining 11 stake of VYTL held by Vardhman Textiles. The put/call option will be exercisable at any time beginning 3 years from 1 September 2016. AE Global became joint venture partner of Vardhman Textiles in VYTL in 2008. Later in 2011 KPS Capital Partners acquired AE Global.The Board of Directors of Vardhman Textiles at its meeting held on 24 September 2016 approved the proposal to buyback the fully paid up equity shares of face value of Rs. 10/ each of the company from the shareholders of the company on proportionate basis through a Tender offer. The buyback shall be upto an aggregate amount not exceeding Rs 720 crore at a maximum price of Rs 1175 per share. On 28 December 2016 Vardhman Textiles submitted to the stock exchanges a copy of Final Letter of Offer for buyback of upto 62.60 lakh equity shares at a price of Rs 1150 per share under tender offer route.On 6 September 2017 Vardhman Textiles informed the stock exchanges that the company has purchased entire stake of Marubeni Corporation 6.67 and Marubeni Hong Kong and South China Limited 3.89 in its subsidiary M/s VMT Spinning Company Limited VMT. The company earlier was holding 89.44 shares of VMT and with this purchase VMT has become its 100 subsidiary.During the year 2019 the Company purchased the entire stake of its Joint Venture partners i.e. 49. As such Vardhman Nisshinbo Garments Company Limited VNGL became a 100 subsidiary of the Company w.e.f. 23rd January 2019.
OrganisationVardhman Textiles Ltd
HeadquartersLudhiana
IndustryTextiles