Pratibha Syntex plans to ramp up production capacities at its Pithampur facility in Madhya Pradesh and set up a greenfield project for terry towel at an investment of Rs 349 crore. The company has secured term loans of Rs 233 crore. The balance investment of Rs 116 crore would be arranged through internal accruals and equity.
The terry towel project will come up in the new special economic zone at Pithampur, with an investment of Rs 217 crore. With a capacity of 12,000 tonnes per annum, production is expected to begin in October next year. The company plans to double production by 2010.
The company is investing Rs 60 crore to augment the dyeing, knitting and garmenting capacity at its existing facility. The expansion at the knitting division would take the production capacity to 98,000 pieces per day from the current 46,000. The expansion is slated for completion by April next year.
Another Rs 54 crore would go towards an open-end spinning capacity of 19 tonnes per day at its existing facility. A 6-MW captive power plant would take up another Rs 18 crore investment.
The company has contract farms spread over 35,000 acres in Madhya Pradesh to supply its cotton. Further, company plans to expand contract farming to Rajasthan and Orissa to include 80,000 lakh acres by 2010. The company is also focussing on organic farming.
The company recorded a turnover of Rs 345 crore in the last fiscal.
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| Posted : 7/1/2006 |
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