Trident rose 2.2% to Rs 9.30 at 13:08 IST on BSE after the company on Saturday, 7 September 2013, announced capacity expansion plans at an investment outlay of Rs 1727 crore.
The announcement was made on Saturday, 7 September 2013. The stock market was closed on Monday, 9 September 2013, on account of Ganesh Chaturthi.
Meanwhile, the S&P BSE Sensex was up 480.92 points or 2.5% at 19,750.98.
On BSE, 26,000 shares were traded in the counter as against average daily volume of 26,513 shares over the past one quarter.
The stock hit a high of Rs 9.40 and a low of Rs 9.25 so far during the day. The stock had hit a 52-week high of Rs 11.05 on 27 August 2013. The stock had hit a 52-week low of Rs 6.08 on 1 August 2013.
The stock had outperformed the market over the past one month till 6 September 2013, surging 30.75% compared with the Sensex's 2.87% rise. The scrip had also outperformed the market in past one quarter, jumping 6.43% as against Sensex's 1.28% fall.
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The small-cap company has equity capital of Rs 310.84 crore. Face value per share is Rs 10.
Trident on Saturday, 7 September 2013, announced the laying of foundation stone of two spinning units and a sheeting unit in Budhni, Madhya Pradesh. The company will install 1.76 lakh spindles and 500 looms with an investment of Rs 1667 crore which will manufacture around 40,000 TPA of additional cotton yarn of higher count and value added varieties and 50 million meters of sheeting per annum. The implementation of these units will be in a phased manner and is expected to be fully operational by September 2015. Post commencement of these facilities combined with increased focus on value added products and end-to-end home textile solutions, the company envisages improvement in realizations and margins, Trident said in a statement.
Trident also announced the laying of foundation stone of its Open End Yarn Project in Budhni, Madhya Pradesh. The project will have a capacity of 1,920 rotors and planned production of around 10,000 TPA with an investment of Rs 60 crore. This project is expected to be completed by June 2014, Trident said in a statement.
The primary focus of Trident Group, with the addition of these facilities, would be on value-added yarn for niche segment of high-end International markets; and on offering complete range of home textile products to global clients spread worldwide. It will also cater to the requirements of the top-notch domestic customers, Trident said.
Commenting on the expansion plans, Mr. Rajinder Gupta, Chairman at Trident Group said, "With this expansion, we intend to widen our reach to other prominent countries which form a strong base for our competing nation's viz. China, Turkey & Pakistan. We also intend to improve our product basket by offering additional cotton yarn of higher count and value-added varieties that satisfy customer needs and improve margins; and by offering towels and bed sheets together, thereby harnessing customers who could not be tapped erstwhile, due to the non availability of complete range of home textile products. With increased emphasis on value-added products combined with various cost optimization measures underway, we believe that this expansion shall be a step further towards our goal of registering a strong performance and delivering better returns to our shareholders."
Post ongoing expansions, the production capacity of Trident Group would rise to 700 looms manufacturing 360 million pieces of towel/annum, 500 looms manufacturing 50 million meters of sheeting/annum, 6 lakh spindles manufacturing 1,50,000 tonnes of cotton & blended yarns/annum and 130 megawatts (MW) of captive power. This will make Trident one of the largest integrated home textile manufacturing facilities in the world. Apart from being a renowned name in Home Textile segment, the company is also the leading wheat straw based paper manufacturer with an annual production capacity of 2,00,000 tons of eco-friendly Paper.
Trident's net profit galloped 4501% to Rs 44.17 crore on 8.5% growth in net sales to Rs 869.26 crore in Q1 June 2013 over Q1 June 2012.
Trident is the flagship company of Trident Group with its array of customers spread across 75 countries. Trident is a leading manufacturer of terry towels, paper, yarn and chemicals.
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