The Hindu Business Line : Pioneer gets nod for merger of Salzer, JJ Textiles

PIONEER Embroideries Ltd has finally got the approval of the Bombay High Court for merger of the Coimbatore-based Salzer Textiles and JJ Textiles (another closely held, unlisted company) with it.

"We got the approval only last evening. We will be able to complete the rest of the formalities within the next two months," Mr H.K. Sethia, Director of the Mumbai-based Pioneer Embroideries Ltd, told Business Line on Friday.

The PEL board had, in October last, received the approval of its members for taking over Salzer Textiles, an EoU in this part of the country. As per the scheme, for every 25 shares held in Salzer Textiles, the shareholder was entitled to one share of PEL, while the shareholders of JJ Textiles were entitled to one PEL share for every three shares held.

Mr Sethia was in Coimbatore on the eve of the launch of the company's sixth exclusive `Hakoba' retail outlet. This though, is the first in Tamil Nadu.

Having positioned itself as the only listed company in embroidery work and with a retail brand, PEL, he said was consolidating itself.

"We are looking at expanding our manufacturing capacity. Our present capacity is close to 1,500 million stitches per year," he said but refused to quantify the envisaged expansion in capacities.

According to him, there were 600 machines doing the embroidery works in India, of which PEL was controlling about 125.

The company owned about 70 machines and had taken 50-odd machines on lease.

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