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The Company was incorporated originally as Premier Synthetics and Processors Ltd. (PSPL) in the State of Maharashtra on 9th October, 1970 by the original promoter Shri. B.K.Jhunjhunwala for setting up a cloth processing unit at Village Pawne (Maharashtra) with IFCI assistance.

Thereafter, it became a sick company and in the year 1985 the controlling interest of PSPL was acquired by Shri Anand Arya. Under the stewardship of Shri.Anand Arya, the company turned the corner in the year 1990 and since then it was continuously making profits and declaring dividend to its shareholders till 1997. The name of the company was changed to Premier Synthetics Ltd. (PSL) in 1992. The present Authorised Capital of the company is Rs.3000 lacs and paid-up capital is Rs.1314.32 lacs.


 
 

PSL is a multi Divisional, multi locational, diversified manufacturing and marketing company with interests in varied fields like Texturising, weaving of Fabrics, Cotton spinning, etc.

After taking over the sick PSPL; turning it around; and clearing off the loan of IFCI as per the agreed repayment schedule, PSL put up its first unit of cloth processing at New Bombay (Maharashtra), which commenced commercial production in 1992. Further, after acquisition of the Company by Shri Anand Arya, PSL also set up a weaving unit with imported second hand looms at Palghar (Maharashtra) and Texturising unit at Daman (U.T.) thereby diversifying into various activities of the textile industry.

In 1996 the Company had undertaken a project for setting up air Texturising and processing facility at its existing locations at Daman/New Bombay envisaging installation of 196 spindles of air Texturising, 6 nos. Drum Washing machines, 2 nos. tumbler Dryer, AC plant, Compressor, Electrification etc. at an estimated cost of Rs.720 lakhs which was financed by way of Term Loan from IDBI to the extent of Rs.500 lakhs under EFS and the balance of Rs.220 lakhs by way of internal accruals. The project was successfully implemented.

PSL further diversified its activities in 1996 by undertaking a diversification envisaging setting up of open end spinning project with an installed capacity of 960 rotors near Ahmedabad. The cost of the project was Rs.2300 lakhs financed by Rupee Term Loan of Rs. 1500 lakhs from IFCI, Internal Accruals Rs. 130 lakhs and Preference Share Capital Rs. 670 lakhs from Promoters. The commercial production started in February, 1997. This unit was set up mainly to cater to the yarn requirements of the Group Company, viz., Blue Blends (India) Limited, which is engaged in the manufacture of Denim fabrics.

Looking at the benefits of economy of operations and consolidation, in 1997, PSL undertook expansion of open end spinning capacity by 1296 imported rotors along with necessary preparatory at its existing site near Ahmedabad. The total cost of the project of Rs.1500 lakhs was financed by availing FCL of USD 13,09,253 equivalent to about Rs.468 lakhs and Rupee Term Loan of Rs. 622 lakhs from IFCI, internal accruals of Rs.160 lakhs and balance by way of Preference Shares of Rs. 250 lakhs from Promoters. The said expansion programme faced time and cost overrun. The cost overrun was met by way of Rupee Term Loan of Rs.516 lakhs from IFCI and the expanded capacities were commissioned in 1999.

As at 31st March, 2010, the company had manufacturing facilities for production of 8700 tpa of yarn and 12,81,000 mtrs. p.a. of fabrics.

A more than a decade and a half old sick cloth processing unit with minimum operations was taken over in 1985 and turned around within a short span of 5 years; taken through a path of diversification and expansion into texturising and cotton spinning within the next 7 years with consistent record of profit and dividend payment under the present management.

The company was hit by the continuous severe recessionary trends since 1997-98 and resultantly all its credit facilities were recalled by the banks and financial institutions due to them having become irregular. Since the company could not regularize its borrowal accounts, the company could not have access to any working capital facility and therefore, its manufacturing activities came under severe strain. Eventually, the company shifted to job work and started conversion of cotton procured for it and supplied by Blue Blends (India) Ltd. Effectively, the company’s income is restricted to conversion/job charges

On account of the mounting losses, the company became sick and has also been declared a sick company as per the provisions of SICA.

The Company was eventually declared as a sick industrial company by the Hon’ble BIFR vide its Order dated 16/02/2006.

 
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