Modern Syntex (India) was incorporated in 1976 as a public limited company to manufacture polyester blended yarn at Alwar, Rajasthan. Modern Syntex has a product mix of grey dyed and fancy yarns in polyester viscose blends and also manufactures a large range of acrylic yarns for hand and machine knitting. The company has also installed a fibre dyeing plant to dye fibres and develop fancy designs. Considering the quality of the company's products, it was awarded the European Mercury award - The Arch of Europe's Gold Star - for international quality, in 1989-90. It also exports its synthetic yarn to the UK and other European countries. In 1993, it acquired the suitings division of Modern Suitings. Similarly, Ashok Fabrics Pvt Ltd, Adarsh Fabrics Pvt Ltd and Aradhana Textiles Pvt Ltd were amalgamated with the company from 1 Apr.'93. After these acquisitions and amalgamations, the company became a fully integrated spinning, weaving and processing plant. The company came out with a public issue in 1994 to finance its Rs 5.13-bln project for setting up Modern Petrofils, to manufacture 52,500 tpa of POY/PFY, speciality filaments, micro filaments and polyester chips, in technical collaboration with Zimmer, Germany, a world leader in polymer process technology. Company has decided to shelve the project for installation of PSF manufacturing facilities alongwith automation of PSF/POY handling for time being. During the year 1999-2000, the petrofils division has been able to achieve an export turnover of Rs.36.95 crores. As the accumulated losses has exceeded its entire networth of the company, it has become sick and is therefore necessary to make a reference to the BIFR.