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GTN Textiles begins Rs 40-cr technology upgradation
E-Tex Staff - Hyderabad

In a bid to remain a strong player in the medium, fine and super fine segment of the global market, GTN Textiles has embarked upon a Rs 40 crore programme to upgrade its technology. It also plans to foray into compact spun yarn and improve its marketing infrastructure.

Anticipating stiff competition in the near future due to the opening up of world markets, the company has decided to lay more emphasis on product/market development, value-added yarns, customer services and technology upgradation, said chairman, Mr M L Patodia. While the part of the investments would go towards tech upgradation, modernisation, product development and the remaining would be spent towards making a major foray into compact spun yarns. According to him, the compact spinning is the latest spinning technology in the world for producing yarns of high quality, which will further bring in diversification in the product-mix of the company. The focussed efforts on technological advancements, product diversification, strategic marketing, cost control measures across the units and debt restructuring will result in maintaining the bottomline and it is hoped that GTN will continue to perform satisfactorily, said the chairman in the annual report. The opening up of world markets, he emphasised, is an opportunity for GTN Textiles. With the adoption of technological advancements, experience in product specialisation in the world cotton yarn trade, the new markets will help the company to maintain its leadership in medium, fine and super fine segments, he added.

To improve the bottomline further in the highly competitive market, the company would continuously focus on improving its operational efficiency, productivity and cost control measures. GTN has also established strong marketing network in various countries to create a brand name, Mr Patodia said. To meet the expenditure, the company has been already awarded a loan of Rs 12 crore by Exim Bank under TUF scheme for part-financing modernisation-cum-expansion plans of the company. A long-term loan of $2.6 million towards working capital requirements has also been tied-up recently. Another rupee term loan of Rs 6 crore has also been sanctioned by Vysya Bank to the company.