Rajapalayam Mills to sell assets and liabilities of Subramaniapuram Unit

03 Feb 2014

Rajapalayam Mills' Board of Directors at its meeting held on February 03, 2014 has decided to sell the assets and liabilities of Rajapalayam Mills - Subramaniapuram Unit subject to the consent of the Members of the Company to be obtained by way of Special Resolution to be passed through Postal Ballot.

The present installed capacity of the Company is 1,46,480 spindles and the Installed capacity of Rajapalayam Mills - Subramaniapuram Unit is only 15,264 spindles. The Net Asset Value (WDV) of Fixed Assets of the Company as per Audited Balance Sheet as on March 31, 2013 was Rs. 341.63 crore and Net Asset Value (WDV) of Fixed Assets as on March 31, 2013 related to Rajapalayam Mills -Subramaniapuram Unit which are proposed to be sold was Rs 22.58 crore. Due to very limited synergies with other units of the Company owing to small scale of operation without any value addition facilities at Rajapalayam Mills - Subramanapuram Unit, the Board has decided subject to necessary approvals to sell the assets along with the liabilities of this Unit.

Rajapalayam Mills is engaged in manufacture and sale of yarns. It is one of the most advanced textile mill in the country and is setting the industry standard for quality and price for many years. Rajapalayam Mills is the first in the country to acquire an Open End Spinning machine in early eighties.

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