Shri Lakshmi to invest Rs 3,500-mn for expansion

Mumbai: Kanpur-based textile company Shri Lakshmi Cotsyn (SLCL) plans to invest Rs 350 crore to more than double its terry-towel manufacturing capacity and set up a new captive power plant.

'Out of Rs 350 crore capital expenditure, Rs 170 crore will be financed through term loans under TUFS and the remaining Rs 180 crore will be raised through equity,' the company's Chairman and Managing Director, M P Agarwal, said.

The company would be expanding its terry-towel capacity at Malwan, Uttar Pradesh, to 15,000 tons per annum from the existing 3,000 tons per annum, he said.

The new facility at Malwan would start operations by March 2009.

The existing Malwan plant manufactures terry towels, denim fabrics, bottom-weight fabrics, nylon fabrics and home furnishing fabric.

The capex plan also includes setting up an agri-based captive power plant at Malwan with a capacity of 12 MW.

'The new captive power plant at Malwan will produce electricity through rice husk. The plant will ensure uninterrupted power supplies at a lower cost,' he said, adding that it would start electricity generation by March.