 Shri
Lakshmi Cotsyn (SLCL) recently announced its investment plan for entry into
the lucrative denim and, terry towel, bedlinens and cotton rich segments.
The company will invest a sum of Rs 264 crore over the next 12 months on
its new project. The funds will be raised through a combination of equity
capital, internal accruals and FI funding. The proposed expansion plan of
the company will enable it to achieve a turnover of Rs 646 crore from the
existing Rs 282 crore in the first year of operation in 2006-07 at 60 per
cent capacity. An established player in the blended fabrics, quilted fabrics,
fusible interlining and embroidered fabrics market; SLCL's foray into the
lucrative denim segment will contribute at least 9-10 per cent to the company's
bottomline.
Commented Dr M P Agarwal, chairman and managing
director, Shri Lakshmi Cotsyn, "The company hopes to leverage the
removal of global textile quotas by setting up new capacities in the buoyant
denim and cotton segments. The land measuring 48 acres for the project
has already been acquired and civil construction is in full swing. Besides
firm contracts for all major imported and indigenous machines have already
been finalized. The proposed product line like denim, Wide width sheeting,
cotton suiting and terry towel, have great demand in the domestic market
as well as internationally".
The company's total capacities after implementation
of the new project will be to the tune of 62.5 million meters, generating
revenue of more than Rs 1000 crore at optimum capacity utilization. Of
this, approximately 50 per cent of the produce will be earmarked for the
export market. Added Dr Agarwal,"Currently the international market
for the existing product range is UAE and African subcontinent. The proposed
products however will target niche markets in the US and Europe."
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