Krishna Knitwear plans Rs 600 cr expansion

Krishna Knitwear Technology Ltd (KKTL) is planning a Rs 600 crore expansion programme in order to almost double its current capacity in spinning, knitting and processing. The project which is expected to be operational by March 2007 at its existing facilities in Silvassa, Dadra and Nagar Haveli, Navi Mumbai and Tirupur, will expand KKTL's spinning capacity to 3 lakh spindles from 1.5 lakh; knitting to 50,000 tpa from 17,835 tpa and processing capacity to 50,000 tpa from 25,000 tpa. Besides, it also plans to increase its garment manufacturing capacity to 10 million pieces from the present 2 million pieces.

"We are aiming to explore the opportunities available not only in the international market but also the domestic market that is well poised in the given situation," said Mr Sanjay Kumar Tayal, chairman, KKTL.

The company will avail the Technology Upgradation Fund to finance almost 70 per cent of its project cost requirements, while the rest will come from international accruals. The project implementation will commence in the next two-three months time. The current expansion follows KKTL's Rs 950 crore capacity expansion project, completed in June 2004.

Meanwhile, KKTL is also firming up its plan to enter the capital market in the near future. “We have got a concrete plan to come out with our maiden IPO in the coming months, though details are yet to be finalised,” said Mr Tayal.