Bannari Amman lines up Rs 50 cr for new windmill

Bannari Amman Spinning Mills Ltd will invest Rs 50 crore to install its fifth windmill with 10.4 mw capacity at Udummalaipet in Coimbatore.

On the sidelines of the company's initial public offering, S V Arumugam, managing director, Bannari Amman Spinning Mills, said that a significant chunk of the investment of Rs 46.1 crore will go into setting up of the wind turbine generators and another Rs 3.8 crore will involve the cost of land, civil, foundation work and commissioning charges.

Bannari Amman Spinning Mills has four windmills located at Sanganeri near Kanyakumari with an installed capacity of 5 mw. After the completion of the proposed project, the total windmill capacity will go up to 15.4 mw, he added.

The company has placed orders for seven windmills aggregating 5.6 mw last month and expect to place order for the balance in November. We expect the installation of windmills will be completed by February 2006 and will be able to start generating energy from new windmills from March 2006, he added.

The current power generated is about 14.80 million units and the total power from the windmills after completion of the expansion would be around 41 million units annually.

Our total power requirement after the completion of the project is estimated at 60 million units per year and the power from windmills will meet around 68 per cent of the company's power requirement on completion of the project, he said.

Arumugam said that to take advantage of the opportunities and with a view to improving the margins through value addition, the company is planning an expansion in spinning and weaving capacities as well as setting up of processing and home textile facilities.

Bannari Amman Spinning Mills will issue 70,00,000 equity shares with a face value of Rs 10 from October 19-25. The price band is fixed in the range of Rs 115 to Rs 135.