Soma Textiles & Industries Ltd Share Price

History of Soma Textiles & Industries Ltd

Soma Textiles & Industries Limited was originally established in the name of 'R.B. Rodda & Co. Limited' in March, 1940, which got the name of the Company changed to Soma Textiles & Industries Limited on 21st January, 1992. The Ahmedabad Unit of Soma Textiles & Industries was taken over in 1969 and a major modernisation and expansion programme was revived by the BIFR. The Company was one of the first units to manufacture Indigo Denim in 1986. In 1994, the Company commissioned its 100% export-oriented spinning unit (cap.: 30,204 spindles) at a capital outlay of Rs 74 Cr. In 1995, it replaced 20 narrow-width Ruti looms with 12 Sulzer 390 cm wide-width looms. To achieve better capacity utilisation, six Sulzer wide-width looms along with one Schlafhorst Rotor Spinning Machine and other bal ...ancing machines were installed and commissioned in Sep.'95. Due to the recessionary trend experienced by the Textile industry and the depressed export market, the steep competition from the unorganised sector resulted in erosion in the profitability of the Company during year 1999-2000.To increase the production of Denim Fabrics, the Company installed 20 Second hand Picanol Airjet Looms in 2003. The Company had taken up diversification In its present production plant and added two new products during March, 2004 viz woolen fabrics and knitted fabrics for which it set up new facilities. The Continuous Bleaching and Dyeing machines along with ancillary equipments were commissioned at the Ahmedabad Unit during the year 2005. With the installation and commencement of the steamer in the continuous Dyeing, the Company became fully equipped to to produce new range of shades for fabrics in 2007. It installed 15 Ring frames with automatic doffing equipment. A capacity to produce 5000 pcs. of garments per day was set up in Ahmedabad Unit in 2007. A wholly owned Subsidiary named Soma Textile 'FZE' was incorporated and registered in Hamriya Free Zone, Sharjah, UAE in 2007. During year 2009-10, Soma Textile FZE, an overseas wholly owned subsidiary of the Company raised its Share Capital from AED 300000 to AED 750000. The subsidiary Company, therefore, allotted additional 450 shares of AED 1000 each to two other foreign shareholders i.e. 225 shares each of an aggregate value of AED 450000 and that resulted in dilution of Company's holding in its subsidiary to 40%, from 100% in the paid up capital of its subsidiary. Consequent upon this, Soma Textile FZE ceased to be a subsidiary of the Company on 31st March, 2010 and upon dilution of the Company's holding to 40%, from 100% in the paid up capital of the said subsidiary, it became an 'Associate' of the Company. The Company expanded the Denim process in 2014. The Baramati Cotton to M/s. GTN (Energy (India) Ltd.) at a lumpsum consideration of Rs 29.80 Cr., in June, 2013. The unit as other industrial units in Ahmedabad city was discharging treated liquid effluents through its normal ETP in to the sewer lines of AMC as a result of directions issued by High Court of Gujarat to severe the industrial effluent sewage connection. The Court directed the AMC to disconnect the water and drainage connections of industrial units which release partially treated/untreated water and said no re-connection to be granted by AMC without prior approval of GPCB. The industries raised the issue of the right to discharge treated effluents in to the AMC sewage lines but the Court discussed the law in detail and concluded that industries do not have authority to release their treated effluents in sewage lines and mix them with domestic waste water. And due to this, the manufacturing operation discontinued in FY24. The Company was primarily engaged in the business of manufacturing of Cotton Yarn, Denim Fabrics, Shirtings and Garments. The Hon'ble Gujarat High Court directed to close down the operations of polluting industries in and around Ahmedabad in the state of Gujarat and the decision of the High Court was upheld by Hon'ble Supreme Court of India, due to which the Company has discontinued its core manufacturing operations and disposed of the plant and Machinery of the Company. In order to sustain the business, preserve shareholder value, and utilize existing expertise, the Company strategically engaged in trading of cotton from the month of November, 2022.