Lakshmi Cotsyn to increase capacity
Textile firm Shri Lakshmi Cotsyn Ltd will invest Rs 189 crore for expansion, which will see the company set up two new manufacturing facilities, besides venturing in the ready made garment segment.
By PTI |
NEW DELHI: Textile firm Shri Lakshmi Cotsyn Ltd will invest Rs 189 crore for expansion, which will see the company set up two new manufacturing facilities, besides venturing in the ready made garment segment.
"We would invest Rs 125 crore for setting up a unit at Fatehpur in Uttar Pradesh to produce specialised industrial textile fabric, particularly for defence organisations," company Chairman and Managing Director M P Agarwal said.
The unit, which is scheduled to be commissioned by year end, will have an annual capacity of four-five million metres.
As a forward integration, the company is also investing Rs 64 crore to set up a manufacturing facility at Roorkee in Uttaranchal, in line with its plans to foray in the ready made garment segment.
"The export oriented unit at Roorkee, to be commissioned by March 2007, would produce garments like denim jeans, trousers and shirts and have an annual capacity of six million pieces," Agarwal said.
Looking to export nearly 60-65 per cent of its capacity at the Roorkee plant, Agarwal said the company is now eyeing exports to the tune of Rs 200 crore in June 2006-07.
The expansion undertaken by the company would increase its annual capacity from the current level of 38 million metres to about 91 million metres.
"We clocked Rs 46 crore in our fiscal ending June 2006 through exports and with a large part of our increased capacity to be exported, we are now eyeing exports to the tune of Rs 200 crore by June 2007," he added.
At present, the company has three manufacturing units in Fatehpur and one at Sonepat in Haryana with a combined annual capacity of 38 million metres.
Besides, the company is about to complete its Rs 264 crore expansion, which it had embarked upon earlier this year.
Agarwal said the company would increase its annual production capacity to 91 million metres from the current 38 million metres once the expansion plan is completed.
"We are all set to start the commercial production by early next month at another unit in Fatehpur, which would manufacture additional new products primarily cotton based and denim," he said.
The expansion would be funded through internal accruals and the company would also utilise the amount recently generated through stake sale
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