The over-all growth of the Indian economy has resulted with positive
indicators such as stable 8% annual growth, rising foreign exchange
reserves, booming capital market, and steadily flowing Foreign Direct
Investments (FDI). All this has not left the Indian textile industry
To increase India's share in the world textile trade from the current
4% to 8% and to achieve an export value of US $ 50 billion by the year
2010, the Indian Government after an intensive interaction with the
textile industry and Export Promotion Councils have formulated a,
'Vision 2010' document. It envisages growth for the Indian Textile
Industry from the current US $ 37 billion, to a staggering
more-than-double, US $ 85 billion by 2010.
In the financial year 2005-06, your company registered gross sales of
Rs. 14174.13 Lacs, which is 14% higher than the previous financial year
of 2004-05 and it posted a net profit of Rs. 2450.56 Lacs, taking an
upward leap of 32% in comparison to the year 2004-05.
With result-oriented contributions from everyone, your Company
continued to perform well in the financial year 2005-06. Encouraged
with the company's performance, the Board of Directors in keeping with
the company's tradition recommended a dividend of 75 % on the enhanced
share capital after the Board declared and allotted bonus shares in the
ratio of I: I to all the shareholders in the financial year 2005-06.
Progressively, to capitalize the upcoming opportunities in the textile
industry, your Company has a well-laid expansion plan to augment the
production capacity further. The new plant located at Surat with an
investment of about Rs. 120 Crores, will have an integrated Yarn
Dyeing, Weaving and Processing facility. This will increase the total
production capacity from the current 11 million metres to 17.5 million
metres of fabric annually.
To conclude, your Company is well poised to reap the opportunities
available in the industry. The continued support of our business
associates, Shareholders, banks, Government and employees will continue
to be the company's greatest assets and enable us to achieve greater
heights in the years to come.
With Warm Regards,
VISHWANATH L. AGARWAL