Shri Lakshmi Cotsyn to invest Rs 2,700 crore for expansion

MUMBAI: Kanpur-based textiles major Shri Lakshmi Cotsyn has earmarked an investment of Rs 2,700 crore for expanding its existing verticals.

The company aims to double its lucrative denim, terry-towel, bed-linen and cotton rich segment production in the next 12 months.

The proposed expansion will enable the company to achieve a turnover of Rs 1,400 crore, as against the existing Rs 1,172 crore, by June 2010.

The funds will be raised through a combination of equity capital, internal accruals, financial institution funding and follow-on public offering (FPO), company officials said.

The firm will invest Rs 378-crore in its terry-towel expansion to increase its capacity from 3,000-tonnes to 15,000-tonnes per year.

The company will invest Rs 75 crore to set up a 12 MW co-generation agri-based power plant for 100 per cent captive consumption and Rs 160 crore in IR fabric manufacturing, Rs 100 crore in black-out curtains, Rs 75 crore in 'Smart Vest' and Rs 350-400 crore in backward integration of its existing verticals, they said.