Towels India Exports. Ltd.

The Company belongs to Padamshi Meghji Group.  Padamshi Meghji was
 established in 1931 and enjoyed a status of Government Recognised
 Export House for more than a decade ending 1992-93 
 
 Existing, profit making and dividend paying Company
 
 Winner of the Bronze Trophy, for excellent export performance
 (Exports 95.41 % of total production) for the year 1991-92 and winner
 of Silver Trophy for being highest exporter (Exports 99% of total
 production) for the year 1992-93, as a Manufacturer-Exporter in
 Made-ups category
 for Cotton Terry Towels awarded by TEXPROCIL.
 
 The largest quota holder based on past performance for exports of
 Cotton Terry Towels to U.S.A., the Company's share being the largest
 in export of Cotton Terry Towels from India to U.S.A.  for 1992-93 
 
 Average annual growth rate in terms of sales is more than 70% over a
 period of last four years.  
 
 Latest State-of-the-art Machineries being imported from Nuovo
 Pignone, Italy 
 
 Low Gestation Period - Commercial Production for expanded capacity to
 commence from December, 1994
 
 TOWELS INDIA EXPORTS LIMITED was Incorporated under the Companies
 Act, 1956 on 7th August, 1985 as a Private Limited Company and was
 converted into Public Limited Company on 18th October, 1993.  The
 Company set up its existing plant for manufacture of Cotton Terry
 Towels at
 Lote Purshuram, Dist.  Ratnagiri, Maharashtra during 1988-89 and
 commercial production was started on 6th January, 1989.  There was a
 delay of three months in commencement of commercial production.
 
 TOWELS INDIA EXPORTS LIMITED promoted by Shri Kulin H. Kothari
 belongs to Padamshi Meghji group, which is in business since 1931. 
 The company has been incorporated to carry on the business of
 manufacture and export of Cotton Terry Towels.  The present
 manufacturing operations are
 carried out at E-26, M.I.D.C., Lote Purshuram, Ratnagiri District,
 Maharashtra.  The Manufacturing unit consists of preparatory,
 weaving, processing, and packing of finished towels.  The unit was
 the first of its kind in India in organised sector.  The unit was
 set-up with the installed capacity of 800 TPA for manufacturing of
 Cotton Terry
 Towels.  The unit has its own processing facility with dyeing
 Jiggers.  The project cost estimated by SICOM in September, 1987 was
 Rs.  263 lacs and was partly financed by way of Term Loans by SICOM
 (Rs.  84 lacs), MSFC (Rs. 55 lacs) and Union Bank of India (Rs. 40
 lacs),
 
 The manufacturing capacity of Cotton Terry Towels is being increased
 from 800 TPA to 1400 TPA with Processing and Printing facility under
 the Expansion-Cum-Forward Integration Project.  This project is being
 set-up at A-4, Chincholi Industrial Area, M. 1. D. C., Taluka North
 Solapur, District Solapur, Maharashtra.  The Processing and Printing
 facility includes bleaching, stentering, Shearing and printing of
 Cotton Terry Towels, resulting into value addition of the finished
 product manufactured by the Company.  The installed capacity of
 Shearing is 2100 TPA and that of Printing is 560 TPA.  This project
 is in advanced stage of completion.  Commercial production of the
 expanded capacity of Cotton Terry Towels has commenced in September,
 1994.  The project cost as estimated by SICOM in October, 1993, and
 in March, 1994 in aggreate was Rs.  794 lacs and was partly financed
 by way of Term Loan/ Equipment
 Refinance by SICOM (Rs.300 lacs) and by Oriental Bank of Commerce
 (Rs.  186 lacs).  The Company issued shares to the existing
 shareholders, friends and relatives aggregating Rs.  163 lacs
 (6,11,500 equity shares issued for cash at par and 2,91,000 equity
 shares issued for cash at a premium of Rs.  25/- per share).  The
 proceeds of the issue were
 received from 28/10/1993 to 02/09/1994, which were utilised for first
 phase of expansion, commercial production of which has already
 commenced.
 
 The Company has been engaged in 100% exports of Cotton Terry Towels
 since inception.  The Company is the winner of the Bronze Trophy, for
 excellent export performance (Export 95.41% of total production) for
 the year 1991-92 and winner of Silver Trophy for being highest
 exporter (Export 99% of total production) for the year 1992-93
 awarded by TEXPROCIL as a Manufacturer - Exporter in Made-ups
 category.  Exports
 Awards for the year 1993-94 are yet to be announced.  The Company
 enjoyed approximately 20% of the Country's exports to U.S.A.  since
 the year 1991-92.  Cotton Textile Export Promotion Council
 distributes export quotas based on numerous parameters.  One of these
 parameters being Export Performance in two years proceeding to the
 previous year 
 (PPQ).  The Company is one of the largest holders of quota based on
 past performance for U.S.A. market.
 
 The Company revalued its, Land, Building, Plant and Machinery and
 Electrical installations situated at Lote Parsuram as on 31 st March,
 1994, at re-investment market value which has resulted in increase in
 value of the said assets by Rs.  3,00,12,089/-.  The revaluation for
 Land and Building was carried out by Government approved valuers,
 Mr.A.J.  Majithia and for other assets by Mr.  Hasmukh B. Shah.  The
 revaluation was carried out with an object to correctly reflect the
 Company's present valuation of above assets.  Given below are the
 details of the revaluation.
 
   Sr.No.   Assets               Book     Value           Book Value
                              prior to revaluation     after
 revaluation
 
   1 . Leasehold Land              74,461                   4,86,000
   2.  Building                 67,83,952                1,78,84,900
   3.  Plant and Machinery    1,01,40,256                2,71,34,700
   4.  Electrical Installation   9,94,842                  25,00,000
 
         Total                1,79,93,511                4,80,05,600
 
 The difference in valuation has been credited to a Revaluation
 Reserve Account as on 31/03/1994 for a sum of Rs.  3,00,12,089/- and
 corresponding book values of the respective assets have been
 increased by difference in valuation.
 
 2004
 
 -Chairman and Managing Director (CMD) Mr. Kulin H Kothari expires on
 February 18, 2004.