Pradip Overseas Ltd.

Our Company was originally formed as a partnership firm in the name
 and style of M/s. Vishal Textile vide partnership deed dated
 April 13, 2005. The name of the firm was changed from M/s. Vishal
 Textile to M/s. Chetan Textiles vide supplementary deed of
 partnership dated June 15, 2005. Subsequently, M/s. Chetan Textiles
 was converted into a company under part IX of the Act
 bearing the name as Chetan Textiles Private Limited under part IX of
 the Act vide certificate of incorporation dated June 29, 2005
 bearing CIN U17100GJ2005PTC46345 under the Companies Act by the RoC.
 Subsequently, our Company was converted into a
 public limited company vide fresh certificate of incorporation dated
 August 09, 2006 bearing the name Chetan Textiles Limited
 with CIN U17100GJ2005PLC046345. Pursuant to the Scheme of Demerger,
 the textile division of erstwhile Pradip Overseas
 Limited (now Pradip Enterprises Limited) merged into Chetan Textiles
 Limited and consequentially the name Chetan Textiles
 Limited was changed to Pradip Overseas Limited vide fresh certificate
 of incorporation dated October 01, 2007.
 
 Our Company is one of the few textile manufacturers with niche focus
 on Home Linen Products of both, wider width and narrow
 width. In addition to the sales in the domestic markets, our products
 are being exported to markets in more than twenty countries
 (directly and indirectly). Our current manufacturing capacity is
 136.50 million metres per annum with an average capacity
 utilization of 92%. Our existing facility is located at Changodar
 near Ahmedabad in Gujarat. We are enhancing our capacities to
 169.50 million metres per annum in order to meet the expanding demand
 and further consolidate our position in the home linen
 market. The expansion project is being implemented at the Proposed
 Textile SEZ being promoted by us near Ahmedabad in Gujarat.
 
 We have been certified as conforming to the Quality Management System
 Standard ISO 9001:2008 covering the supply of dyed and
 printed fabrics. Further, our existing manufacturing facility at Plot
 No. 104, 105 and 106, Charcharwadi - Vasana Sarkhej, Bhavla
 Highway, Opposite Zydus Cadila, Near Prakash Solvent, Changodhar,
 Ahmedabad 382213, Gujarat, India, has been granted
 authorization according to Oeko-Tex Standard 100 to use the Oeko-Tex
 mark for articles, namely bed sets (made-ups), woven
 fabrics made out of 100% cotton and polyster, bleached, reactive
 dyed, reactive printed, dispersed dyed and dispersed printed and
 pigment printed (inclusive sewing threads, buttons and zippers),
 produced by using material certified according to Oeko-Tex
 Standard 100. Further, after implementation of the Project, we also
 intend to file applications for obtaining similar certifications for
 our Proposed Manufacturing Facility.
 
 We have been constantly making an endeavor to create new and more
 attractive designs / patterns on our products in order to have
 an advantage over other players in the market. We have a team of
 designers who develop the indicative designs received from
 customers and also develop independent designs and we have an
 extensive library of designs.
 
 Our Company is eligible for benefits under the Technology Upgradation
 Funds Scheme (TUFS) of the Government of India. Please
 refer chapters titled Industry Overview and Key Industry Regulations
 and Policies beginning on pages 84 and 116 respectively,
 of the Red Herring Prospectus. Further, the Proposed Manufacturing
 Facility to be set up by our Company in the Proposed Textile
 SEZ is also eligible for benefits under the SEZ Act.
 
 Our evolution
 
 Our Promoter, Mr. Pradipkumar Karia, has over two decades of business
 experience in textiles with specific focus on the home
 linen business in the last fifteen years. In the year 1985, he
 commenced business as a supplier of various textile products in the
 domestic market. In the year 1993, M/s. Anu Impex was established as
 a partnership firm to carry out the business of supply of
 Home Linen Products to merchant exporters. With the objective of
 timely delivery, consistent quality and competitive pricing, it
 outsourced the procurement of grey cloth and processing of the grey
 cloth, while the processed fabric was stitched at its own
 stitching and packing unit. Another partnership firm under the name
 and style of M/s. Pradip Exports was established in the year
 1995 to carry on similar business. Its focus was solely on exports
 and operations were wholly outsourced, with stitching being
 carried out by M/s. Anu Impex. M/s. Anu Impex has ceased to carry on
 business as on date. In FY 2000, Pradip Overseas Private
 Limited (POPL) (now Pradip Enterprises Limited) was incorporated. It
 commenced business in FY 2004 when it acquired a defunct
 textile manufacturing unit at Changodar, Ahmedabad from a bank
 through an auction process set up and operationalized that unit to
 manufacture Narrow Width Home Linen Products, with an installed
 capacity of 22 million metres per annum of Narrow Width
 Home Linen Products. This company also commenced the business of
 trading in agro-products during FY 2005. POPL was
 converted to a public limited company during the FY 2007.
 
 In the year 2005, the textile sector underwent a major change, on
 account of global factors like elimination of quotas under the
 WTO Agreement on Textiles and Clothing (ATC) and the consequent
 increase in export opportunities, coupled with the growth of
 the Indian economy, primarily the urban areas. These factors operated
 to increase the demand for wider width fabrics. To service
 this demand, our Promoters, established a partnership firm under the
 name and style of M/s. Vishal Textiles, invested in a greenfield
 wider width manufacturing facility at Changodar near Ahmedabad in
 Gujarat which became operational in February 2006. Its name
 was changed to M/s Chetan Textiles in FY 2006 and in the same year,
 it was converted into a private limited company under Part IX
 of the Act, bearing the name Chetan Textiles Private Limited. The
 initial installed capacity was 24.96 million metres per annum of
 wider width Home Linen Products.
 
 With a view to consolidate the Narrow Width and Wider Width Home
 Linen Product manufacturing activities in one corporate
 entity, the textile division (as stated in the order of the High
 Court of Gujarat dated August 17, 2007, effective from April 1,
 2006)
 of erstwhile Pradip Overseas Limited (now Pradip Enterprises
 Limited), comprising of the Narrow Width Home Linen
 Manufacturing Unit, was demerged into Chetan Textiles Limited, and
 the name of erstwhile Pradip Overseas Limited was changed
 to Pradip Enterprises Limited with effect from September 24, 2007.
 Also, the name of the Chetan Textiles Limited was changed to
 Pradip Overseas Limited with effect from October 1, 2007, with a view
 to enjoy the continued recognition of this name among its
 customers. Pradip Enterprises Limited is continuing the activity of
 trading in agro-products.
 
 Acquisition of defunct textile manufacturing Unit at Changodar,
 Ahmedabad by erstwhile Pradip Overseas Limited (now Pradip
 Enterprises Limited), and setting up and operationalization of that
 Unit to manufacture Narrow Width Home Linen Products.
 Major Events:
 
 YEAR                                              KEY EVENTS
 
 Pre-incorporation of our Company
 
 2003 - 2004                       Acquisition of defunct textile
 manufacturing Unit at Changodar, Ahmedabad by erstwhile Pradip
 Overseas                                                    Limited
 (now Pradip Enterprises Limited), and setting up and
 operationalization of that Unit to manufacture                       
                            Narrow Width Home Linen Products.
 
 Post-incorporation of our Company
 
 2005 - 06                          Commencement of manufacturing of
 Wider Width Home Linen Products at the Unit I division II of our
 Company                                          with an installed
 capcity of 24.96 million metres per annum.
 
 2006 - 07                          Increased installed capacity from
 24.96 million metres per annum to 79.20 million metres per annum.
                                          2007-08 The textile unit of
 erstwhile Pradip Overseas Limited (now Pradip Enterprises Limited)
 was merged in                                          our Company
 with effect from April 01, 2006, and subsequently the name of our
 Company was changed to                                         
 Pradip Overseas Limited and name of the erstwhile Pradip Overseas
 Limited was changed to Pradip Enterprises                            
              Limited pursuant to the Scheme of Demerger.
 
 2007 - 08                          Increased installed capacity from
 79.20 million metres per annum to 108.50 million metres per annum.
 
 2008 - 09                          Increased installed capacity from
 108.50 million metres per annum to 115.50 million metres per annum.
 
 2009 - 10                          Increased installed capacity from
 115.50 million metres per annum to 136.50 million metres per annum.
 
 
 Awards, Achievements and Certifications:
 
 Year                                          Particulars
 
 2007                                Certified under Global Organic
 Textile Standard-GOTS
                                         (Standards for the processing
 of fibres from certified organic agriculture).*
 
 2006                                Certified as ISO 9001:2000 (now
 ISO 9001:2008)
                                         (Quality Management System)
 
 2008                                 Authorisation to use Oeko-Tex
 Standard mark for certain cotton and polyester home linen products.
                                          Awarded as one of Gujarat
 Glories - Most Trusted Companies of 2008 awards instituted by Sara
 Media Inc in
                                         association with Zee Business
 - our Company stood 29 among the top fifty
 
 2009                                Authorisation to use Oeko-Tex
 Standard mark for certain woven fabrics for cotton and polyester home
 linen                                         products
 
 2009                                Certified under Organic Exchange
                                         (Standards of the Organic
 Exchange)
 
 2010
 
 --Registered Office of the Company has been shifted from A/601,
 Narnarayan Complex, Near Swastik Char Rasta, Navrangpura, Ahmedabad
 380 009 To 104,105,106, Chancharwadi Vasna, Opp. Zydus Cadila,
 Sarkhej Bavla High Way, Tal.Sanand, Ahmedabad 382213
 
 2013
 
 -Pradip Overseas has given the Bonus in the Ratio of 1:5
 
 2014
 - Pradip Overseas Ltd. has appointed Mr.Avinash Mayekar as an
 Independent Director of the Company.