Supertex Industries Develops new path-breaking product for Knitting / Textile Industry

Supertex Industries Ltd has announced that the Company has developed a new product for the knitting industry. This is a path-breaking achievement as the knitting industry can now purchase, from the Company, high quality filament yarn on beams which are manufactured to international standards without human intervention or handling. This manufacturing process has been developed "in-house" by the Company and the product has been well accepted in the market promising better returns to the Company, particularly as it is the only supplier of the product.

Further, Recently the management has changed the guard and introduced younger, fresh generation team to manage the affairs of the Company. This appears to be successful as in the year ended 2006, the Company has made a positive cash profit for the first time since March 31, 1998. It is pertinent to note that the cash breakeven was achieved at a mere 28% capacity utilisation. This proves the success of the process reengineering exercise carried on by the management in the past year and the optimisation of the machines achieved therefrom.

The Management team has already initiated the restructuring of the business and the financial structure of the Company. It is also in advanced stage of negotiation with its secured creditors for restructuring all their dues. The management is very positive about all the reforms and the forthcoming restructuring of the Company.

Source : Equity Bulls

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