Shri Lakshmi Cotsyn to set up Rs 264 cr unit

Kanpur-based textile company Shri Lakshmi Cotsyn plans to set up a Rs 264 crore plant in Fatehpur, Uttar Pradesh.

The unit will have a capacity to manufacture 20 million metre denim fabric,12 million metre bed linen and home furnishing, 6 million metre heavy weight bottom fabric and 3,000 tonne terry towels.

"The ongoing expansion is likely to go on stream from July. We plan to enter cotton-rich segments in the international markets," said M P Agarwal, chairman and managing director.

The company aims to become a major textile player with a total capacity of 77.2 million metre.The expansion will be financed through term loans (Rs 185 crore), equity (Rs 62 crore) and internal accruals (Rs 17 crore).

Its promoters have approved an issue of 38 lakh equity shares of Rs 10 each at Rs 129 per share to investors, including the promoter group and associates, on a preferential allotment basis, subject to the approval of shareholders.

They have also agreed to issue Rs 12 lakh share warrants, which are convertible or exchangeable with equity shares of Rs 10 each at Rs 129 per share.

At present, the company is exporting poly filament fabric and allied products. It manufactures 18 million metre suiting shirting, 10 million metre cotton sheeting processing, 1.2 million metre embroidered and quilted fabric and 2.5 million metre industrial fabric for defence and others.

In the last five years, the company's revenue increased from Rs 117.85 crore (2000-01) to Rs 282.38 crore (2004-05). Net profit increased from Rs 4.36 crore to Rs 10.28 crore and cash profit increased from Rs 6.19 crore to Rs 12.62 crore.