Banswara Syntex expansion proceeds on course

Rajasthan-based Banswara Syntex Ltd (BSL), a vertically-integrated textile company, is going ahead with its Rs 227 crore expansion plans. BSL manufactures man-made, synthetic, blended and cotton yarn, suitings and trouser fabrics.

The current installed capacity of its plant in Banswara is 10,24,64 ring spindles, 576 airjet spindles and 148 airjet shuttle-less looms.

The company also has a readymade garments facility at Daman with an installed capacity of 1,25,000 trousers. BSL exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Philippines, Turkey, and Gulf Cooperation Council countries.

"The programme is progressing on schedule with installation of 16,000 polyester viscose spindles and 16 shuttle-less weaving looms by March 31, 2007", a company official said.

Post expansion, the total installed capacity would stand at 1,28,000 polyester viscose spindles, 15,000 cotton spindles, 576 airjet Spindles and 162 weaving looms and processing machines. Installation of garment facility at Surat sez is also on track with capacities of 150,000 trousers and 30,000 jackets per month. The construction of 18-Mw thermal power plant project is also on schedule and is expected to streamline power generation by June. "Going forward we expect a huge jump in our operating margins due to lower cost of power and higher contribution from garmenting business," Ravi Toshniwal, joint managing director, BSL said.

The company on Thursday announced a 61.08 per cent rise in net profit at Rs 14.94 crore for the year ended March 31, 2007 as compared with Rs 9.26 crore in the corresponding previous year. Net sales rose 20.33 per cent to Rs 381 crore compared with Rs 316.63 crore during the previous year.

The company has posted 31.02 percent rise in Earnings Before Interest Depreciation Taxes and Amortisation (EBIDTA) at Rs 56.85 crore for the year ended March 31, 2007 compared with Rs 43.39 crore in the corresponding previous year.

Exports sales during the year jumped by 20.46 per cent to Rs 224.42 crore from Rs 186.30 crore during the corresponding previous year.

Commenting on the results, RL Toshniwal, chairman of the company said, "Our profitability continues to be moderate on account of higher power cost. We are in the advanced stage of setting up an 18 MW thermal power plant, which is scheduled to become operational by June and this will substantially add to our profitability."