Shanti Spintex Ltd - Stock Valuation and Financial Performance

The company was originally incorporated as a private limited Company under the name of “Shanti Spintex Private Limited” on August 23, 2010 under the provisions of the Companies Act, 1956 with the Registrar of Companies, Ahmedabad. Thereafter, the company was converted from private limited to public limited and the name of the company was changed from “Shanti Spintex Private Limited” to “Shanti Spintex Limited” vide fresh certificate of incorporation dated August 18, 2023, issued by the Registrar of Companies, Ahmedabad, Gujarat.

Incorporated in 2010, the company is primarily engaged in manufacturing and selling of denim fabrics. It began its business as a fabrics trading concern in the FY 2014-15. In 2016, the company established its fabric weaving unit at Dholi – Integrated Spinning Park, Dholka, Ahmedabad. The company has various airjet looms installed at Dholi unit. Weaving is the process of converting yarn into fabrics wherein two distinct sets of yarns or threads are interlaced at right angles to form a fabric. The airjet looms installed by it utilize a technique where a jet of compressed air is used to insert the weft (crosswise) yarn into the warp (lengthwise) yarn to create the raw fabrics also known grey fabrics.

Business area of the company

The company manufactures various type of denim fabrics such as power stretch spandex denim, knit denim, light weight denim, rigid denim, over dyed denim and flat finish 3/1 denim. Its production facility has capability to produce grey fabrics in various designs such as twill weave, knit dobby weave, structure dobby weave, broken twill weave and satin weave. It offers denim fabrics in diverse spectrum of shades such as indigo blue, IBST, sulphur black, sulphur grey, halogen blue and ecru colour which has weights ranging from 4.50 Oz/sq. yd to 14.50 Oz./sq. yd. and widths spanning from 62 inch (157cm) to 78 inch (198 cm). Its operations encompass utilization of diverse type of yarns such as cotton yarn, ring yarn, viscose yarn, slub yarn, cotton spandex, polyester spandex, tencel, lyocell etc. which are procured by it from domestic market. In addition to yarn, it also directly procures grey fabrics from the market, which are subsequently sent for finishing, and is then sold to customers. It outsources the yarn dyeing and grey fabrics finishing process to third parties.

Major events and milestones

• 2010: Incorporation of the Company as “Shanti Spintex Private Limited” under the Companies Act, 1956.
• 2016-17: Commencement of manufacturing unit at Dholka, Dholi, Ahmedabad, Gujarat.
• 2017-18: Capacity expansion at existing unit by installation of additional airjet looms.
• 2018-19: Crossed revenue of RS 100 crore.
• 2021-22: Crossed revenue of Rs 250 crore.
• 2022: Commissioned a wind energy power plant (Wind Farm) of combined capacity of 2 MW in the village Likhala, Taluka Savarkundla, District Amreli, Gujarat.
• 2022-23: Crossed revenue of Rs 350 crore.
• 2023: Conversion of company from Private Limited to Public Limited. In consequence of such conversion, Name of the company changed from “Shanti Spintex Private Limited” to “Shanti Spintex Limited”.
• 2023: Installed the 852 kw rooftop solar plant at manufacturing unit.