Pradip Overseas plans textile SEZ in Ahmedabad

Ahmedabad: Revising its expansion plans, Ahmedabad-based Pradip Overseas, manufacturer of house-hold linen will set up an SEZ instead of the integrated textile park it was planning near Changodar in Ahmedabad district.

The company has applied for an SEZ status and work on the same is expected to start in the next four months. To fund its upcoming capex plans, it is also working on the possibility of coming out with an IPO in the next six months.

The company has already acquired 111 acres of land near Changodar. The facility will house activities like spinning, weaving, stitching, processing and packaging. An investment of close to Rs 380 crore is expected to be pumped in by the company in the next two-three years.

The manufacturing capacity of the plant will commence with 1 lakh mts per day which will be scaled upto 5 lakh mts per day in the next three years.

Pradip Karia, chairman and managing director of Pradip Overseas said that with a processing capacity of 5 lakh mts per day, the plant would be one of the largest in Asia. Cotton, synthetics and organic cotton would be used as materials.

Entering the retail segment, Pradip Overseas has just launched 'Lucy B Linen', an American brand in India and would hold its exclusive marketing rights. Under the new brand, Pradip Overseas will manufacture bed sheets, pillow covers, curtains, cushions, towels, napkins and quilts.

The distribution of the product would be handled by CA Patel Textile (CAPS) for domestic marketing which has a retail presence of 2000 outlets. The brand has a price range of Rs 300 to Rs 5000.

For the year 2007-08 the company recorded a turnover of Rs 658 crore of which nearly 15 per cent came from exports. With the launch of the new retail brand, the company is looking at a turnover of close to Rs 1000 crore of which 30-35 per cent is expected to be from exports.

The current domestic market of home linen products is estimated to be close to Rs 8400 crore and is expected to grow by 9 per cent. According to a Technopak analysis, the per capita textile consumption of textiles in India is expected to grow from 20 mts to 30 mts.