PSL to invest Rs 349 for expansion
Pratibha Syntex Ltd (PSL) will invest Rs 349 crore on expansion, which includes setting up a terry towel facility in Madhya Pradesh and is considering tapping the capital market with an Initial Public Offer to part finance the projects.
By PTI |
NEW DELHI: Textile firm Pratibha Syntex Ltd (PSL) will invest Rs 349 crore on expansion, which includes setting up a terry towel facility in Madhya Pradesh and is considering tapping the capital market with an Initial Public Offer to part finance the projects.
"We are putting up a terry towel plant having an initial capacity of 12,000 tonne per annum at a SEZ which is located very close to our existing plant in Pithampur (Madhya Pradesh) with an investment of Rs 217 crore," Managing Director Shreyaskar Chaudhary told reporters here on Thursday.
Besides, it also plans to set up an open-end spinning unit with 19 tonne per day capacity at the existing plant, which would entail an investment of Rs 55 crore, he said.
PSL, presently having a capacity of 48,000 spindles, would also be expanding the production capacities of its knits division, which would cost the company another Rs 60 crore.
It would also invest Rs 18 crore for installing a 6 MW captive power plant at its existing facility.
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On the source of financing its proposed investment, Shreyaskar said, "We have already tied up term loan of Rs 233 crore. The remaining Rs 116 crore would be funded through equity and internal accruals."He said it was exploring all the options to raise the funds, including IPO and private placement.
While the terry towel unit would commence production from October 2007, the other projects would go on-stream from April, next year.
With the completion of expansion, the company, which generates 70 per cent of its present turnover of Rs 345 crore from exports, aims to achieve a revenue of Rs 800 crore by 2009, he said.
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