Hytone Texstyles Ltd Stock Analysis

Hytone Texstyles, earlier known as Hytone Synthetics was incorporated as a private limited company on January 11, 1989 and was converted into a public limited company on May 14, 1992, it got its present name on July 08, 2000. The company is engaged in manufacturing of blended and worsted suiting made from polyester, blended, worsted and filament yarn.

The company has its manufacturing facilities at Navi Mumbai in Maharashtra with an installed fabric processing capacity of 18 million meters and a weaving capacity of 2.325 million meters. The products are marketed under the brand name Hytone. It has a well established dealer network in India and major export destinations include Europe, the Middle East and South East Asian countries.

The Company had made reference to BIFR in December 2004 under Section 15 of Sick Industrial Companies (Special Provisions) Act, 1985 ("SICA"). Accordingly case has been registered. The Company has submitted various proposals to Financial Institutions and Bankers for rehabilitation of the Company The Company was successful in arriving at one time settlement with Canara Bank and The South Indian Bank Limited.

Business area of the company:

The Company is presently working on job work basis

Milestone:

• 1989 The Company was incorporated as a private limited company on 11th January. Subsequently the company was converted into a public limited company on May 14, 1992. The company is getting the suitings manufactured from outside on the job work basis pending creation of adequate in-house production capacity.
• The company undertook to set up a plant for the manufacture of exclusive blended and worsted suitings with an installed capacity of 6,94,000 metres p.a by installing 12 nos. imported second hand Sulzer Projectile Weaving machines.
• The products are replacing the conventional fabrics made from natural fibres and due to their low/no wool content are comfortable to wear in the Indian climate. 
• 1992 The Company proposed to import another 12 Sulzer looms to expand its capacity at its New Mumbai Plant.
• The Company has installed sophisticated Sulzer Projectile Weaving Machines at its Plant in New Mumbai. 
• 1994 The Company undertook to set up a process house for processing worsted a polyester viscose blended suitings and also expanding its existing wearing capacity to 20 lakhs meters/annum. The capacity was further augmented by adding 4 Sulzer Looms during the year. The Company is also setting-up a process house for processing of Blended and Worsted suitings at New Mumbai to ensure lower processing costs, lower inventory and to improve product performance.It is proposed to introduce Energy System during the current year. 
• 1995 Bottom line remained under pressure due to higher interest burden and overheads. First phase of process house for processing wollen, worsted and polyester viscose blended suitings was commissioned. In respect of the process house project under implementation, the company has installed energy efficient boilers/thermopack. 
• 1996 In addition to the expansion of the weaving capacity to 20 lakhs meters per annum, the first phase of the Process House for processing wollen, worsted and polyester viscose blended suitings was commissioned. Hytone Synthetics Ltd has set up a processing division at New Mumbai with imported machinery from Germany and Italy, having a capacity to process eight lakh metre of fabric per month. 
• 1997 During the year under review, the Second phase of the process house for processing Woollen, Worsted and polyester viscose blended suitings was commissioned. The Company has installed energy efficient boilers, thermopack and Stenter machines which are eligible for 100% depreciation under Income Tax Act, 1961 under the head Energy Saving equipments.
• The Company has established a full fledged quality control department for checking qualities of poly-viscose and polywool yarn as well as chemicals wherein numerous tests as regards to the quality like micron testing, colour fastners and strength of the yarn are carried out to ensure proper supply of standard quality of yarn for the company’s value added products. It has enabled the Company to launch Legrands, a new brand for Polywool fabrics for domestic as well as export markets. 
• 1998 The Company proposes to increase its processing capacity by 30% p.a. & production capacity by 25% p.a. by installing new machineries. 
• 1999 The Company proposes to expand the processing facilities in addition to synthetics and polywool like cottons and cotton blended fabrics.  It is proposed to install necessary mecerise range which is heart of cotton processing, alongwith the sanforising machines and other balance equipments for this purpose.
• The Company has diversified into new products like cottons, polynosics and tencel etc. during the year. The Company has enabled to make a brand Casual Line in cottons and polynosics. 
• 2000 The name of the company has been changed from Hytone Synthetics to Hytone Texstyles.