Sportking India was incorporated on 15 Feb.'89 by Raj Kumar Avasthi and his family members. It was engaged in the business of hosiery knitwears and readymade garments at New Delhi. Due to shortage of skilled and semi-skilled labour in hosiery knitwear and readymade garments, the company suspended this activities in 1993-94._x000D_ _x000D_ The company diversified its activities by installation of 6520 spindles at Meharban (Ludhiana district), Punjab, to manufacture acrylic yarn, which commenced commercial production on 3 Dec.'93._x000D_ _x000D_ In 1995, the company embarked on an expansion programme to set up a new spinning unit with a complement of 12,000 spindles in the first phase, out of the envisaged capacity of 25,000 spindles for the manufacture of acrylic / synthetic yarn, at Kanech, Punjab. In order to part-finance the project, it came out with a public issue in Dec.'95._x000D_