Alps plans Rs 250 cr textile unit in Roorkee

Ghaziabad-based Alps Industries is planning to set up a Rs 250 crore weaving and textile-processing plant near Roorkee in Uttar Pradesh. The new unit is expected to start production in March next year.

Alps Industries, a leading company in the home furnishing, fashion accessories and architectural products, is in the process of acquiring land for the project.

"We will be need around 40 acres of land for setting up the weaving and textile processing plant. We have already finalised a large part of our land requirement and are planning to start civil construction work next month," said Alps Industries Managing Director Sandeep Agarwal.

On the funding of the new project, he said the company aimed at raising Rs 125 crore in debt from banks, Rs 100 crore equity through GDRs and Rs 25 crore would come from internal accruals. "We are in talks with several banks to raise debt," he added.

Stating that Alps Industries had finalised an aggressive expansion plan, Agarwal said the company had recently set up a fibre-dyed spinning unit at Haridwar and had taken two spinning mills located at Kashipur and Jaspur on 10-year lease from the Uttaranchal government.

These units would take up the company's production capacity of yarn from 33 TPD at present to around 100 TPD by May 2006, he added.

The company, which raised Rs 49.80 crore through the issue of 4,150,500 shares at Rs 120 in September 2005, has notified its plans to raise up to Rs 175 crore through either ADRs/GDRs/preferential allotment of warrants convertible into equity shares.

The company, at present, has four units in Ghaziabad and one in Pondicherry. Textile products contribute 89 per cent and architectural items 11 per cent to the company's turnover.

"A large part of the yarn produced will be used by the company for downstream products like made-ups and tery towels. It will also help in strengthening the supply chain and ensuring a better control over cost and quality of the end-products," Agarwal said.

The company sells home furnishings under Vista Home Fashions, fashion accessories under Le Pashmina, office furniture fabric under Response, architectural products under Vista and wooden floorings under the Vista Floor Fashions brand. The company claims to be the market leader with over 30 per cent share in the organised sector of the window covering segment.

Remarking that exports contributed around 30 per cent of the company's turnover and was set to rise given the growing demand all over the world, he said Alps products were being exported to reputed brands in the US, the UK, Spain, Italy and Greece.

On the future plans, Agarwal said, "We aim at leveraging our brand strength in the domestic market are in the process of evaluating several plans to determine the most suitable retail format for our products. I expect our own one-two exclusive showrooms to start this year."