The board of directors of Vardhman Textiles Limited, at its meeting held on August 13, 2019, considered and approved the scheme of arrangement amongst VMT Spinning Company Limited, VTL Investments Limited, Vardhman Nisshinbo Garments Company Limited, Vardhman Acrylics Limited with Vardhman Textiles Limited.

Vardhman Textiles Limited (VTL) is a listed company engaged in the business of manufacturing cotton yarn, synthetic yarn and woven fabrics. The group is sixty years old started with 6000 spindles to manufacture yarns. Every decade it went into diversification, expansion and joint ventures. As on date, it is one of the largest vertically integrated textiles group in India manufacturing fibre, yarn, sewing threads, fabrics and garments (mainly shirts). Because of multiple takeover, joint ventures, and corporate restructuring, it has multiple companies operating in similar or complementary businesses.

VMT Spinning Company Limited (VSL) is a wholly-owned subsidiary of VTL. The company is engaged in the business of manufacturing cotton and blended yarn.

Vardhman Acrylics Limited (VAL) is a listed company, listed on the National Stock Exchange of India Limited. VAL is engaged in the business of manufacturing acrylic fibre. The company has set up an 18000 TPA acrylic staple fibre and tow production plant at Jhagadia, Gujarat, India.

VTL Investments Limited (VIL), a NBFC, is a wholly-owned subsidiary of VTL. VIL is a. VIL holds investment in equity shares of VTL (1.75%), Vardhaman Special Steels Limited (VSSL) – 1.06% and VAL – 0.09%.

Vardhman Nisshinbo Garments Company Limited (VNGL) is a wholly-owned subsidiary of VTL. VNGL is engaged in the business of manufacturing and sale of garments (mainly shirts).  During the financial year 2018-19, VTL acquired 68,60,000 shares representing 49% of equity share capital of Vardhman Nisshinbo Garments Company Limited (VNGL) from its joint venture partner namely M/s. Nisshinbo Textile Inc. on January 23, 2019, for a consideration of 1.37 crores. Accordingly, VNGL has become a wholly-owned subsidiary of the Company w.e.f. January 23, 2019.

The Transaction

From Appointed date as 1st April 2020, VTL has decided to merge its 3 wholly-owned subsidiaries and one listed subsidiary VAL to consolidate its operation and collapse insignificant listed entity into one.

Vardhman-Textiles-Subsidiaries-Merger-1

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