Published On:November 22 2007
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Ventura Textiles charts out Rs 92-cr expansion plan
Mumbai: Ventura Textiles Ltd, which recently got re-listed on the Bombay Stock Exchange, has drawn a Rs 92-crore expansion plan to enhance capacity and set up a captive power plant at its Nashik facility.
The company will be set up a wider width dyeing and processing unit, besides adding 20,000 ring-spindles and expanding weaving capacity.
“An addition of 20,000 ring-spindles would cost Rs 35-40 crore, while it will be only Rs 12 crore for us as we will have the land for expansion,” said Mr P.M. Rao, Managing Director, Ventura Textiles.
The company own 35 acres in Nashik.
The company has raised Rs 30 crore as term loan. Around Rs 25 crore will come as equity investment, Rs 3.5 crore from the Technology Upgradation Fund and the rest from the promoters.
The Anil Ambani group had subscribed to Rs 21 crore optionally fully convertible debenture and Rs 6 crore as equity for restructuring of the company.
“Our aim is to set up a fully integrated manufacturing facility to attract foreign orders,” he said. The company targets a turnover of Rs 150 crore for financial year 2009 and Rs 275-300 crore by FY ’10.
The company reduced the equity capital to Rs 9.8 crore by repaying some high-cost debt and writing off accumulated losses.
On rupee appreciation against dollar, Mr Rao said “though US remains the biggest market for textiles, we will export to Europe, Australia and Japan. The domestic market has also shaped up well and opened up another avenue,” he said.
On Tuesday, the company’s shares on the BSE rose 4.99 per cent to Rs 83.