Vijay Textiles sews up Rs 50 cr growth plans

Company to go in for stock split & revises face value

Hyderabad-based Vijay Textiles Limited plans to open three more retail outlets in Andhra Pradesh with an investment of around Rs 50 crore in the next two years.

Addressing a press conference to announce the company's third quarter results, B Vijay Kumar Gupta, chairman and managing director, Vijay Textiles Limited, said, "The company, which currently has one retail outlet in Hyderabad, is looking at one more in the city and one each in Vijayawada and Visakhapatnam."

According to him, half of the amount required for the expansion would be raised from internal accruals and the other half from financial institutions or a rights issue.

Vijay Textiles is also looking at having three franchise stores in the US in the next six to eight months. Gupta said that the first of the stores would come up in New Jersey, followed by one in Chicago and Atlanta.

"The company is planning to have an in-house studio in the next one month at the retail outlet, where a customer can virtually design the furnishing and upholstery of choice and then place an order," Gupta said.

The company's net profit for the third quarter ended December 31, 2004 was at Rs 4.17 crore as compared to Rs 35.83 lakh in the corresponding previous quarter. The income from operations for the quarter increased 68 per cent to Rs 24.4 crore (Rs 14.52 crore).

The company's board has the purpose of dividend has been fixed on March 4.

Gupta said that the rise in sales during the period was mainly due to their new strategy of direct selling apart from the technology upgradation programme.

"Apart from this, the rise in the sales is also because of the technology upgradation programme, which has been completed and now the production capacity has gone up 12 per cent to 18 lakh meters per month. Another reason is because of the decrease in the volume loss from nine per cent earlier to two per cent," he said.

Gupta said that for the first nine months of the current financial year the company's sales was at Rs 61 crore, which is a significant achievement if compared with the total sales of the last financial year which was at Rs 63.24 crore.

Gupta said that the rise in sales during the period was mainly due to their new strategy of direct selling apart from the technology upgradation programme.

"Apart from this, the rise in the sales is also because of the technology upgradation programme, which has been completed and now the production capacity has gone up 12 per cent to 18 lakh meters per month. Another reason is because of the decrease in the volume loss from nine per cent earlier to two per cent," he said.

For the first nine months of the current fiscal, the company's sales was at Rs 61 crore, which is a significant achievement as last fiscal's total sales stood at Rs 63.24 crore.