SATNAM OVERSEAS-Rice Export Boom

suiting and shirting manufacturers. Besides, the company has set up a cotton yarn EOU at Dharuhera with an installed capacity of 12t500 spindles, which went on stream in this March. Ramesh Kumar Jain, chairman, has claimed that the company has the twin advantage of one of the lowest per spindle cost of Rs 8,055 in the spinning industry with an EOU and a highly profitable existing unit with a low equity base of Rs 3.02 crore and one of the highest multiples to the sales turnover. For the new additional PV yarn capacity, the company has procured state-of-the art machinery from Lakshmi Reiter, Coim- batore, and Murata of Japan which will help it to manufacture international quality PV yarn. The company's financial performance in 1992-93 has been excellent with sales at Rs 54 crore, net profit at Rs 4.29 crore and an EPS of over Rs 13 on the enhanced capital of Rs 3,02 crore resulting from the conversion of partly convertible debentures in June 1992. Working in the first four months of the current year (April-July 1993) has shown a jump of over 46 per cent in sales of Rs 24.50 crore from Rs 16.77 crore in the corresponding period of 1992-93 and a more than proportionate spurt of 68 per cent in profit before depreciation to Rs 2.40 crore from Rs 1.43 crore. In view of the tax benefits accruing from the EOU, there will be no lax liability in 1993-94. The company expects to achieve exports of Rs 18 crore in 1993-94, with a likely contribution of around 85 per cent from the cotton yarn EOU The company plans to enter the capital market shortly with a rights issue for financing the Rs 25 crore project for the expansion of polyester-viscose spinning capacity. The company has also promoted Pasupati Taoru, a 100 per cent export-oriented terry towel project, which is expected to commence commercial production by the middle of 1994.