At present, exports consitute around 20 per cent of company's revenues and the company expects the export share to touch 50 per cent after it starts exporting yarn to South America, UK and Nigeria, said PVR Murthy, Group Finance Director of the Yash Birla Group, during his visit to Ahmedabad.
In a bid to augment its exports and production, the company is setting up an integrated textile unit at its facilities in Khamgaon, Ghatanji and Malkapur in Maharashtra. The company plans to infuse around Rs 320 crore for project. "There is a huge export potential in South America, UK and Nigeria and exports to these countries will start after the intergrated textile unit is operational," he added.
Birla Cotsyn is entering the capital market with an Initial Public Offer (IPO) of Rs. 144.18 crore to fund its expansion. The issue opens for subscription on 30 June and closes on 4 July. Apart from integrated textile unit, the company is also entering into retail space. It plans to launch around 20 retail outlets across the country, including 8 metro and 12 non-metro outlets.
Around Rs. 31 crore would be invested for its retail venture. The other expansion projects of the company include setting up of a garment manufacturing plant. "The company is also looking at a greenfield manufacturing unit in Gujarat," he added.
Talking about the current scenario in yarn prices, President and CEO of Birla Cotsyn K K Baheti said that in last one year yarn prices have increased by around 25 to 30 per cent. The prices have surged mainly due to increase in the cost of cotton, a key raw material for yarn manufacturing. "Prices of synthetic polyester have also firmed up by 25 to 30 per cent following rise in petroleum prices," said Baheti, who was here in Ahmedabad in connection with company's IPO.
