Birla Cotsyn (India) plans to enter the capital market with an IPO of Rs.144 crore to fund its expansion plans. The proceeds from the issue will be utilized to set up a integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji & Makkapur in Maharashtra, with an investment of Rs.320 crore. The investment will also fund the company's foray into retail outlets which it plans to set up pan India.
At Malkapur, the company has already commenced commercial production of Phase I, by setting up a 36,000 cotton spindle yarn manufacturing unit. In Phase II, the company has set up an open end rotor based cotton yarn manufacturing facility having capacity of 1,728 rotors, which is operational and is currently in the process of setting up a weaving unit of cotton grey fabric with 114 looms. In the third phase, the company will manufacture finished fabric by setting up a dyeing and processing facility with an installed capacity of 50,000 meters per day.
Birla Cotsyn is also setting up an readymade garment manufacturing unit and entering the retail garment sector by establishing 20 retail outlets across the country to support this foray the company is setting up a garment manufacturing facility. |