Prag Bosimi Synthetics Ltd Share Price

History of Prag Bosimi Synthetics Ltd

Incorporated on 31 July, 1987, Prag Bosimi Synthetics Limited (PBSL) was promoted as a joint venture between Assam Industrial Development Corporation (AIDC) and Bombay Silk Mills (BOSIMI). The Company is engaged primarily in manufacturing of Polyester Yarn. The company came out with a Rs 27.1-cr public issue in Feb.'92 to part-finance the manufacture of 15,000 tpa of polyester filament yarn (PFY), establishment of downstream facilities of draw texturising and draw twisting of yarn, and to meet for working capital requirements. The total project cost was estimated at Rs 188 cr. The company manufactures polyester yarn. It has introduced different varieties of yarn like 30 denier, 50 denier, 75 denier, twisted and dyed assortments. The company has a technical collaboration with EMS Inventa ..., Switzerland, to produce POY/PFY. Textile division commenced commercial production in 1993. The last phase of the project (installation of 6 direct spinning lines) which was expected to be completed in Aug.'95 is delayed due to various reasons including indifferent law and order conditions, lack of infrastructure and skilled manpower, etc. The Project is expected to be completed during the year, financial institutions have sanctioned additional short term finance by way of redeemable convertible preference shares to the extent of Rs 30.96 cr. During the year 1999-2000, the net loss was Rs.983.13 lacs and the State Bank of India has sanctioned the rehabilitation and restructuring proposal and 40% of the working capital requirement of the company. During 2010, the Company formed a wholly owned subsidiary company for implementing the Textile Park Project, completed entire refurbishment work, restored 132 KVA dedicated High Tension Power supply by ASEB at site with required transformers; installed new UPS System for uninterrupted power supply. The Company installed one more texturising machine in 2013. It started a separate division named Bosimi Apparel under the Brand Name 'BOSIMI' in 2015-16. During 2017-18, new machineries costing Rs 22 crore were instigated and commissioned. It started commercial production, selling the products in West Bengal and within Assam in 2018. During the current year 2023-24, the company has further consolidated its position after settlement of the labour issue with the help of AIDC and Govt of Assam. The company further took steps to settle all its pending legal issues. The company had voluntarily written to APDCL for disconnection of power during Covid period shut down as it was not in the position to foot the bill for fixed charges due to suspension of operations resulting from National Lockdown. However, APDCL at that time did not disconnect power but later permanently disconnected power without hearing or settlement of long pending claims outstanding with APDCL. Accordingly, the company has started minor maintenance so that on reconnection of power the factory may be restarted in a phased manner. In the meantime, Company is also exploring the possibility of setting up of a Bio-Disel unit which will ultimately take care of the power needs of the entire unit. Accordingly, the company has been following up for its capital subsidy due to it. The process of selling (Second phase) various scrap materials, machinery's, damage and obsolete spares etc by way of public tender with due approval of the board has started.