The new project relating to dyeing, weaving and process house will be set up at Tarapur, Maharashtra, while the garment unit will be set up in Bangalore. The company has already acquired 10.57 acres of land at Tarapur. Further, the Karnataka Industrial Areas Development Board has allotted 2.12 acres in Bangalore for the other project.
In the weaving division, the company will install 84 looms initially, which will be entirely imported. The processing division will have a capacity of 105,300 metres per day. An in-house garmenting unit consisting of various machines will be set up to cater to the making of garments and packing them into pieces as per customer requirement. After expansion, the company's yarn dyeing capacity will go up by 660 tonnes per annum, weaving capacity by 8.25 million metres, processing capacity by 32.66 million meters, and garmenting by 7.43 million pieces per annum.
In October 2006, the company applied to the Maharashtra Pollution Control Board for environment clearance for the Tarapur project. It is, however, yet to apply to the PCB for environment clearance for its Bangalore project. The total cost of the project is Rs 155.09 crore. The company plans to raise funds for the project through a mix of IPO proceeds, term loan and internal accruals. The expansion project will start partial commercial production by July 2007 and full commercial production from October.
the Board of Directors of the Company in its meeting held on 01st February, 2008 has allotted 30,00,000 (Thirty Lakh) Equity Warrants of Rs.10 each at a premium of Rs 110/- per warrant, to the promoters of the Company entitling the warrantholders to apply for an equivalent number of fully paid-up equity shares at any time during 18 months from the date of allotment, the detail is as per following: 1) Name of the Promoters: Mr. Murarilal Agarwal; No. of Equity Warrants: 12,97,000; 2) Name of the Promoters: Mr. Ravindra Agarwal: No. of Equity Warrants: 12,93,000; 3) Name of the Promoters: Mr. Vishwambharlal K Bhoot; No. of Warrants: 4,10,000; Total No. of Equity Warrants: 30,00,000."
the Company has its Initial Public Offer of 95,80,000 Equity Shares of Rs. 10/- each at premium of Rs. 80/- aggregating to Rs. 86.22 Crores. Company made Pre IPO Placement to SIDBI Venture Capital Limited and State Bank of India at premium of Rs. 65/-.
The Company has positioned itself as an integrated multi product, multi fiber and multi market player covering the entire textile value chain at length. The Companys target market is a diverse mix of the domestic market, garment export trade and international market (exports) to ensure risk diversification and stability of earning. Presently the Company sells its fabrics to domestic as well as international market. In addition, we also use the fabrics for internal consumption and at the same time sell it to other garment exporters. The Company exports its Garments and recently started with manufacturing garments for Indian well known brands. Companys process house caters to its requirements and at the same time do outside jobs.
The Company is making continuous efforts in upgradation of technology and also expanding its capacity to reduce the cost and to remain as a competitive supplier of high quality products in the domestic and as well as in the international market. During the year, the Company has installed 12 looms and 300 stitching machines under TUF Scheme and the commercial production has already been started. The Company is also in the process to install 112 looms other than mega expansion project. The Company is in process to install two units of garments having more than 500 stitching machines at Bangalore in rented property and the same will be shifted in owned building after the same is ready and we expect that the Companys full mega expansion project is likely to be commissioned by February 2008 and we expect that the combined effect of all will give good results for the current financial year.
it is going to post 10.eps for 2007-08. at current level 46.5 it is avilable at 5 p.e just buy for smart gains.
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