The company was incorporated as public limited company at Bangalore on
17.05.1993. The certificate of commencement of business was obtained
on 24.05.1993. The approval from Ministry of Industry was received in
September 1993 and the civil construction commenced thereafter. The
machinery was received only in August 1994 and the commercial
commenced in January 1995.
The company was set up to produce warp and hosiery cotton yarn with
an installed capacity of 8064 spindles at a project cost of Rs.533.85
lacs under phase I which was funded by way of term loans from State
Bank of Hyderabad, Canara Bank and promoters equity.
Under the Single Window Agency, the department of Industries and
Commerce, Government of Karnataka allotted 10 acres of land for the
project in Raichur Growth Centre on 06.05.1993. It also cleared power
supply of 650 KVA from KEB. The water is being supplied to the extent
of 1000 gallons per day from KIADB sources.
During the implementation of phase I of the project there was cost
over-run and the project cost was revised to Rs.674.12 lacs. The cost
overrun to the extent of Rs.140.27 lacs was on account of the
(i) The area of factory building was increased to 58,000 sft. from
the projected 48,500 sft to accommodate the proposed expansion. The
cost over run due this was Rs.31.92 lacs.
(ii) The revised configuration of the machinery and addition of other
equipments entailed a cost overrun to the extent of Rs.44.31 lacs.
(iii) The increase in preliminary and preoperative expenses were to
the tune of Rs.22.02 lacs.
(iv) The increase in working capital margins were to the extent of
(v) The increase in miscellaneous fixed assets is to the extent of
The above cost over-run has been financed by both State Bank of
Hyderabad and Canara Bank to the extent of Rs.55.00 lacs and the
balance has been funded by the promoters. The commercial production
commenced in January 1995 with captive power generation.
To take advantage of the incentives extended to exports by the
Government, the company has proposed to increase the capacity from
8064 spindles to 12096 spindles in the second phase.
-Company has changed its name from Vishal Cotspin Ltd. to Rodium
-Registered Office of the Company has been shifted From 104, 1st
Floor, 2nd Main, 4th Cross, Gavipuram Extn., Basavanagudi, Bangalore
- 560019 To Plot No. 636, 501, X' cube, Off New Link Road, Andheri
(West), Mumbai - 400053.