Richimen Silks Ltd.

The company was incorporated as a private Limited company on 16.10.84
 at Hyderabad.
 
 It was converted in to a public limited company on 19.9.85. It was
 promoted by Mr.G Vittal.  The company manufacturers varieties of silk
  fabrics.
   
 The company undertook to set up a silk mill under the 100% export
 oriented scheme of Government and a legal understanding was effectged
 with the Government of India on on 30th October, 1985 for export of
 the entire production. The unit with a capacity to manufacture 5lakh
 meters per annum of silk fabrics was set up at a village Morampalli
 in athe Ananthapur district, a notified backward area in Andhra
 Pradesh. Nichimen Corporation, Osaka Japan provided Zuzuku-Warping,
 PIPA, winders, TODD Weaving accessories, etc., and twenty sulzer
 Brothers, Ltd looms were procured from Sulzer Brothers, Ltd.,
 Switzerland. Nichimen were also to offer their expertise besides
 providing services to assist in erection of the plant. The company
 covered under OGL for both import of machinery against export, is
 also a Green Card holder which ensures priority treatment from
 Government departments. The raw material, China Silk yarn was to be
 imported from Singapore. Trial production commenced on 7th December,
 1987.
 
 TECHNICAL CONSULTANCY SERVICES:
 The company entered into an agreement with Gherzi Eastern Limited for
 technical  consultancy services for the project.
 
 MARKETING ARRANGEMENT:
 The company entered in to a memorandum of understanding with Leebash
 Marketing Pvt Ltd. Singapore, who agreed to buy the entire production
 from the company for marketing it in the International market.
 
 OPERATION:
 Commercial production started on 5th April, 1988. The company
 proposed to manufacture  6,50,000 mtrs of pure silk fabrics in
 various varieties such as crepes, chiffons, georgettes, taffettas
 etc. The Chinese Government assured a regular supply of white steam
 filature for the company's future export production requirements. 
 
 1989-90: Inspite of increase in production, targets could not be
 achieved due to problems like availablity of superior quality of silk
 yarn labour and marketing setback.
 
 1990-91: Despite continued problems, the company could achieve
 production and sales of 3,9999 mtrs respectively.