Eskay embarks on Rs 350 cr expansion

Eskay K'n'IT, a textile firm all set to implement its Rs 350 crore expansion plan, is expected to become operational by June next year. With this, the company hopes to strengthen its presence both in export as well as domestic market.

The capital earmarked for the expansion will be partly met by internal accruals (Rs 200 crore) and the rest will be borrowed.

"Under Technology Upgradation Fund Scheme (TUFS), a sum of Rs 150 crore is sanctioned as term loan. We have already invested Rs 70 crore and for the rest we are in advanced talks of raising capital from the market and through FCCB," said Navin Kumar Tayal, chairman, Eskay K'n'IT.

He added that in case the market does not support, the expansion plans will not be put on hold and will be carried on as stipulated with internal accruals.

The Rs 430 crore company will be expanding its spinning, knitting and processing capacities in its plants in Silvassa, Bhilad and Navi Mumbai. It will add 75,600 spindles which will subsequently add 13,184 tpa in knitting and 13,608 tpa in processing of textile fabric.

The garment facility in Bhilad is attracting a significant sum of the investment. On machinery alone, for this plant the investment will be around Rs 233 crore.

"There will be a mix of indigenous and imported machinery. Indigenous equipment to be installed in the plant will be valued at Rs 92 crore where as imported ones will cost Rs 141 crore," said Tayal.

Eskay, an integrated textile firm, currently has 65,000 spindles giving it a spinning capacity of 24,000 tpa, 200 knitting machines having a capacity of 33,000 tpa and 18,000 tpa of processing capacity.