Surat Trade & Merchantile Ltd Company Summary

Surat Trade & Merchantile Ltd Summary

Surat Trade and Mercantile Ltd was originally incorporated as Public Limited Company in the name of Surat Textile Mills Limited on November 29, 1945. The name of the Company was changed to Garden All Cotton Limited with effect from July 21, 1993. Again, the name was changed to Garden Cottons and Yarns Ltd. with effect from October 5, 1993 and consequently to Surat Textile Mills Limited with effect from March 11, 1997. The Company is presently engaged in the business of trading in commodities and commodity related activities while considering the resources and size of the Company. The companys 3 manufacturing plants are located in Surat, Gujarat.In Mar.95, it issued rights shares at a premium and FCDs. During 1994-95, STML privately placed secured redeemable PCDs with financial institutions. The above proceeds were utilised for the companys expansion cum modernisation programme which it undertook by installing 25,200 spindles and manufactured PFY having a installed capacity of 17,500 TPA. The above expansion were completed and production was started in 1996.The Poly Condensation Unit commenced commercial production of Fibre grade Polyester Chips in 1996. The implementation of the POY Spinning project has been set up into two two phases due to demand recession. The companys yarn doubling and grassing project at silvassa became fully operational during 1996-97.In 1998 the company installed 12,384 spindles of synthetic fibre at Vareli and production started in the same year. The operating environment of Polyester Chips and Yarn segment remained unfavourable since 2021- 2022. With the objective to preserve the value of the plant assets (being in shut down condition), the Management after evaluating various options, decided to sell the assets of the Companys Manufacturing Division at Taluka Palsana, Surat, in relation to the unit and executed the definitive agreements in April, 2022. Consequent to sale/transfer of the assets, the management after considering various options for possible alternate business, commenced the new activities of trading in commodities and other commodity related business from third quarter of FY23.In 2022-23, Vareli Trading Company Limited (VTCL) got merged with the Company and was made effective from September 26, 2022 through the Scheme of Amalgamation.