Incorporated in Mar.'91 as Mid India Spinning Company, a public limited company, Mid India Industries (MIIL) is a 100% export-oriented spinning unit. MISL is mainly promoted by R P Ganediwal and others. Its name was changed to the present one in Feb.'95. The company's unit is located in Mandsaur, a rich cotton-growing area in Madhya Pradesh. It went public in Mar.'93 to meet the entire capital requirement for the first phase of the installation of 12,480 spindles at a cost of Rs 16.3 cr. The plant is equipped with state-of-the-art spinning machines. Commercial production started in Jan.'94. The company has entered into a MoU with Unimax, Italy, for the purchase of the entire production. For the second phase of expansion (12,500 spindles), building construction has been already started and machineries are almost finalised. In 1995-96, the company earned foreign exchange worth Rs 18.94 cr. During 1996-97, the second phase of cotton yarn has been postponed for the further expansion of installation of another 8160 spindles. Company is planning to open overseas office to make effective marketing in the international yarn market and provide best services to the foreign buyers. As the accumulated losses of the company have resulted in erosion of more than 100% of its net worth,the company has become a sick industrial company as per Section 3(1)(O) of SICA .