Yash Birla to invest 315 cr on greenfield textile plant
After selling a 50 per cent equity in textile firm Birla Cotsyn to P B Bhardwaj Group for an undisclosed sum.
By TNN |
MUMBAI: After selling a 50 per cent equity in textile firm Birla Cotsyn to P B Bhardwaj Group for an undisclosed sum, Yash Birla group now plans to invest Rs 315 crore jointly with the equity partner to set up an integrated greenfield plant at Khamgaon in Maharashtra.
Birla Cotsyn was originally incorporated in 1941 under the name of Jamod Ginning Company by R D Birla. It was rechristened as Birla Agro in 1998 and with effect from May 2006, it is known by its present name.
Unlisted Birla Cotsyn is engaged into textiles with an annual turnover of Rs 60 crore.
"We will invest Rs 315 crore to put up a greenfield plant over 100 acres of land at Khamgaon, near our existing plant, which will start production from January 2008," Birla Cotsyn Vice Chairman Yash Birla told reporters here.
He said that once completed, the company would have a capacity of 60,000 spindles.
The company would manufacture open-end rotor-based cotton yarn with an installed capacity of 1,728 rotors and weaving of grey fabric with 114 looms.
Birla Cotsyn would also start manufacturing its own branded garments in 2008 and has plans to put up 30 retail outlets across major cities in the country.
"We will manufacture finished cloth from 2008 with an installed capacity of 50,000 meters per day by setting up a dyeing and processing unit and enter into the retail of garments with our brand," Birla said, adding that the name of the brand has not yet been finalised.
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