Himatsingka Seide Ltd

Himatsingka Seide Ltd is an Indiabased company, which is engaged in manufacturing of home textile products, mainly in bedding, drapery and upholstery products, made of cotton, silk, and blends. Their products include silk/blended fabrics, spun silk/blended yarn, bed linen fabric and bed linen sets. The company products are offered across Germany, France, England, Italy, South America, Australia and USA. As on March 31, 2019, the Company had subsidiaries, namely Himatsingka Wovens Pvt Ltd, Himatsingka Holdings NA Inc, Himatsingka America Inc.,and Himatsingka Europe Pvt. Ltd.The company operates through their spinning and weaving divisions. Himatsingka Filati, the spinning division, was established in technical collaboration with Filati Buratti of Italy, which produces a wide range of regular and fancy 100% silk and silk blended yarns and the weaving division offers yarn dyed decorative, bridal and fashion fabrics. The entire operation of winding, doubling, twisting, dyeing, weaving and finishing is integrated under one roof.Himatsingka Seide Ltd was incorporated in the year January 23rd, 1985 and was promoted by Ajoy Kumar Himatsingka and Dinesh Himatsingka. In March 1993, the company came out with a rights issue at a premium to partfinance their expansion and to augment funds for meeting longterm working capital requirements.During the year 199798, the company successfully implemented 600,000 square meters of weaving capacity at a cost of Rs 20.20 crore. Also, the company set up 2 units of 2.2 MW each captive power plant at a cost of Rs 6.61 crore. During the year 200001, the company added 12 rapier looms, which further augmenting capacity by 400000 meter.During the year 200203, the company acquired ABC Trading Pct Ltd for a total consideration of Rs 5.75 crore. Thus ABC Trading Pvt Ltd became a wholly owned subsidiary of the company and the name of the ABC Trading Pvt Ltd has been changed to Himatsingka Wovens Pvt Ltd. The company used the Himatsingka Wovens Pvt Ltd as their vehicle for the retail venture.During the year 200304, the company forayed into domestic retailing launched atmosphere, India s first luxury home furnishing brand. The first showroom was opened at Bangalore in September 2003 and three more showrooms at Mumbai, Chennai and Delhi between October 2003 and March 2004. In April 2004, the company incorporated a wholly owned subsidiary, Himatsingka America Inc., in New York to strengthen their distribution network in USA and from July 2004, the subsidiary company commenced their operation. During the year 200405, the company added six more showrooms taking the total number to ten.In February 2007, the company acquired 70% stake in Giuseppe Bellora SpA, Italy for the consideration of EUR 11.51 million (Rs 68.76 crore). This marks the first step towards global integration for the company. Also, they launched their first international store in Dubai, UAE. In May 2007, the company set up a wholly owned subsidiary company Himatsingka Singapore Pte Ltd, which launched a store in Singapore during October 2007. In June 2007, the company through their wholly owned subsidiary, Himatsingka America Inc acquired 80% in Divatex Home Fashions Inc., New York and in October 2007, they completed the acquisition of a 100% stake in DWI Holdings Inc, USA, through their wholly owned subsidiary, Himatsingka America Inc. Himatsingka Wovens Pvt Ltd, the wholly owned subsidiary, commissioned a made ups unit at Apparel Park in Bangalore.In October 2007, the company commissioned their new bed linen manufacturing facility with an annual installed capacity of 20 million meters located at Hassan Special Economic Zone in Karnataka. The company received the Largest Silk Exporter award from the Indian Silk Export Promotion Council for the fourteenth consecutive year.The company is setting up a captive 12.5 MW coal based cogeneration power plant at Hassan SEZ, which is expected to be commissioned by August 2009.With effect from 1st August, 2015 the Groups holding company in North America has been renamed Himatsingka Holdings NA Inc. In addition, the two operating subsidiaries Divatex Home Fashions Inc and DWI Holdings Inc have been merged and renamed as Himatsingka America. Inc.The Drapery and Upholstery unit of the Company, which was operating as 100% Export Oriented Unit (EOU) has exited out of EOU on November 5, 2015 and currently operates as a Domestic Tariff Area Unit (DTA). Bed Linen unit of the Company at Hassan which was operating as Special Economic Zone (SEZ) exited out of SEZ and currently operates as a Domestic Tariff Area Unit (DTA). The Official Memorandum dated 27th January 2016 along with final exit notification from Ministry of Commerce and Industry, Department of Commerce SEZ Section has been received by the Company.With effect from February 17, 2017, the Company has incorporated a wholly owned subsidiary in Europe namely Himatsingka Europe Ltd, which is registered with the Registrar of Companies for England and Wales.As part of strategy to have London as Head Quarters for whole of European Operations, the Board of Directors of the Company in their meeting held on March 22, 2017 approved disinvestments of 100% holding in its Subsidiary Company Giuseppe Bellora Srl and sell the same to its wholly owned subsidiary, Himatsingka Europe Limited at fair value. Post disinvestments of companys holding, Giuseppe Bellora Srl has become a wholly owned step down subsidiary under existing wholly owned subsidiary of Himatsingka Europe Limited.Himatsingka America Inc., a wholly owned subsidiary of Himatsingka Seide Limited concluded the acquisition of the home portfolio from the Global Brands Group Holding Limited on May 18, 2018. The acquired home portfolio includes the exclusive license rights to famous and iconic Tommy Hilfiger Home brand, the Copper Fit brand and other brands. During the year under review, Himatsingka Singapore Pte Ltd, a step down wholly owned subsidiary of Company through Himatsingka Wovens Private Limited, struck off under the Laws of Singapore w.e.f March 08, 2019 and Giuseppe Bellora LLC merged with Himatsingka America Inc. w.e.f March 26, 2019.In FY19, the Company undertook an initiative to reorganise its European operations. As a result of the reorganization, the Company entered into a Share Purchase agreement with Himatsingka Holdings NA Inc., USA, a wholly owned subsidiary, and sold 100% stake in Himatsingka Europe Limited, a wholly owned subsidiary of the Company. Further, Giuseppe Bellora Srl, Italy a 100%, wholly owned subsidiary of Himatsingka Europe Limited, after shifting its seat of incorporation from Italy to USA, was merged with Himatsingka America Inc, USA. Himatsingka America Inc, USA, is a wholly owned subsidiary of Himatsingka Holdings NA Inc., USA.Through the Scheme of Arrangement, demerger of the retail business division of Himatsingka Wovens Private Limited, wholly owned subsidiary with the Company was envisaged in FY19. Pursuant to applications submitted to Office of Regional Director (South East Region), Ministry of Corporate Affairs, Hyderabad, the same has been approved and the division has been duly vested with Company and same have been reflected in books of accounts.