Vardhman Acrylics Ltd Company Summary

Vardhman Acrylics Ltd Summary

Vardhman Acrylics Ltd is an India-based company. The company is engaged in the business of manufacturing of acrylic fiber and tow. They have set up 18,000 TPA acrylic staple fiber and tow production plant at Jhagadia, Bharuch in the state of Gujarat. Their products are marketed under the brand name VARLAN. The companys products include circular knit, flat knit, woven, tufting, and pile fabric. The companys products are used in hosiery, weaving, home furnishing, industrial, and other applications. The company operates as a subsidiary of Vardhman Textiles Ltd.Vardhman Spinning and General Mills Ltd (VSGML), a company belonging to the Vardhman Group and UP State Industrial Development Corporation Ltd (UPSIDC) mutually agreed to form a public limited company for manufacturing Acrylic Fibre. Accordingly, Vardhman Acrylics Ltd was incorporated on December 24, 1990 as a public limited company. UPSIDC, at the time of the agreement, was holding a letter of intent from the Government of India for establishing a plant to manufacture Acrylic Fibre in the state of Uttar Pradesh. However, the actual implementation and setting up of the project was deferred since a revised feasibility study did not find the project viable at that time. Subsequently, UPSIDC terminated the collaboration agreement with VSGML and accordingly the shares held by UPSIDC were transferred to VSGML.In September 1995, Mahavir Spinning Mills Ltd, another company belonging to the Vardhman Group incorporated a company named Vardhman Fibres Ltd to set up a project for the manufacture of Acrylic Fibre in Bharuch, Gujarat. In September 29, 1995, Vardhman Fibres Ltd entered into Technology supply Contract with Kawasaki Heavy Industries Ltd, Japan for transfer of technology of Japan Exlan Company Ltd. Vardhman Fibres Ltd also entered into Equipment Supply Contract with Marubeni Corporation, Japan for supply of proprietary and special plant and equipment.The Vardhman Group decided to implement the Acrylic Fibre project in Vardhman Acrylics Ltd. Accordingly, the registered office of the company was transferred from UP to Punjab and all contracts originally signed by Vardhman Fibres Ltd with Marubeni Corp. and Kawasaki Heavy Engg. Industries Ltd were re-assigned to the company. Thus the company became a subsidiary of Mahavir Spinning Mills Ltd.In the year 1996, Mahavir Spinning Mills Ltd entered into a joint venture agreement with Marubeni Corporation, Japan and Japan Exlan Company Ltd, Japan for setting up an Acrylic Fibre Project for manufacture of 16,500 TPA Acrylic Staple Fibre and Tow at Jhagadia, Bharuch, Gujarat. The work on the project was kicked off in August 1996. In March 16, 1999, the company commenced commercial production.During the year 2003-04, Vardhman Textiles Ltd (formerly Mahavir Spinning Mills Ltd), disinvested 27,568,527 shares of Rs 10 held in the company by way of offer for sale to public through 100% book building process. As a result of disinvestment, the share holding of Vardhman Textiles Ltd in the company reduced from 62.19% to 36.79% and consequently the company ceased to be the subsidiary of Vardhman Textile Ltd with effect from September 26, 2003.During the year 2006-07, the company increased the production capacity of Acrylic Fibre & Tow from 16,500 MT to 18,000 MT.During the year 2007-08, Vardhman Textiles Ltd entered into a Disengagement Agreement with their foreign collaborators namely, Marubeni Corporation, Japan and Japan Ellan Company Ltd, Japan. Consequently, all the shares of the company held by Marubeni and Exlan transferred to Vardhman Textiles Ltd. As a result, the joint venture agreement among Vardhman Textiles Ltd, Marubeni and Exlan were terminated and the company became a subsidiary of Vardhman Textiles Ltd.During the year 2009-10, the company increased the production capacity of Acrylic Fibre & Tow from 18,000 MT to 20,000 MT.The company in 2022-23, set up a 18000 TPA Acrylic Staple Fibre and Tow production plant at Jhagadia, Distt. Bharuch in Gujarat.