Bank consortium tightens noose around Garden Silk Mills

  • | Saturday | 16th March, 2019

The manufacturing units of the company are located in Vareli and Jolwa villages near Surat.The company owns popular Vareli Sari brand. The company manufactures polyester chips, polyester filament yarn, preparatory yarn, woven cloth as well as dyed cloth, printed saris and dress material. The future of power loom weavers in Jolwa and Vareli hangs in balance.”Company owners were not available for comments. Many more textile companies will fall in bad loan category in the days to come. Many Bollywood actresses had endorsed the brand.Federation of Gujarat Weavers’ Welfare Association (FOGWA) president Ashok Jirawala said, “The situation in textile business has turned from bad to worse and Garden Silk Mills is a classic example of it.

Surat: A consortium of lenders led by Bank of Baroda has placed all bank facilities of Garden Silk Mills Limited in default category and also put on sale their exposure in the company to recover Rs2,311 crore worth of bad loans on 100 per cent cash basis.The last date for submission of the bid is March 28 4pm.The bids will be opened at 4.30pm on the same day. The prospective bidder shall have a net worth of at least Rs50 crore as per last audited balance sheet or in case the bidder is a fund, the assets under management (AUM) shall be at least Rs500 crore as per last audited balance sheet, a BoB notification of March 13 says.The city-based textile company is promoted by chairman and managing director Praful Shah, joint managing director, Alok Shah, executive directors Sanjay Shah and Shuhail Shah. The company manufactures polyester chips, polyester filament yarn, preparatory yarn, woven cloth as well as dyed cloth, printed saris and dress material. The manufacturing units of the company are located in Vareli and Jolwa villages near Surat.The company owns popular Vareli Sari brand. It had run many advertisement campaigns across the country to make the brand popular. Many Bollywood actresses had endorsed the brand.Federation of Gujarat Weavers’ Welfare Association (FOGWA) president Ashok Jirawala said, “The situation in textile business has turned from bad to worse and Garden Silk Mills is a classic example of it. Demonetization and GST had hit the industry hard. Many more textile companies will fall in bad loan category in the days to come. The future of power loom weavers in Jolwa and Vareli hangs in balance.”Company owners were not available for comments.

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