Jagjanani Textiles to set up plant in Gujarat

Jagjanani Textiles Limited (JTL), the Jaipur-based textile company, will set up a weaving and processing plant in Gujarat by 2008.

Managing Director S G Vyas told Business Standard, "We are looking into the possibilities of setting up a weaving and processing plant in Gujarat by 2008. The overall investment could be around Rs 200 crore. Once the plant is set up, we plan to begin producing readymade garments under the brand J J Gold here."

Vyas has announced the company's decision to enter the capital markets with a public issue of 81 lakh equity shares of Rs 10 each at a price band of Rs 25 per equity share aggregating Rs 20.25 crore.

The company will invest the money for its expansion and forward integration projects which include setting up of a ring spinning unit of 6,000 spindles for manufacturing fine cotton yarn and upgrading existing open-ended spinning units by installing doublers to increase the existing yarn capacity from 3,600 MTA to 4,320 MTA.

The company will also set up a weaving unit for manufacturing fabric, by installing 48 high-speed air jet looms.

Vyas also added that the company is in informal discussions with Arvind Mills, Ashima, Raymond, Soma Textiles, JCT and others for sale of cloth materials. The company claims to be a leader in specialty yarn for denim and industrial fabrics.

"We enjoy a 40 per cent share in the denim and industry fabric yarn in the industry," claimed Vyas.

Vyas also said that Ahmedabad itself shares almost 50 per cent of its sales turnover.

The company expects to commence work on the proposed projects by June 30. The company made a net profit of Rs 2.10 crore from its turnover of Rs 27.75 crore.

For the six months-ending September 30, 2006, JTL made a net profit of Rs 1.25 crore on an income of Rs 11.05 crore. According to Vyas, JTL expects to double the figures by the end of this fiscal.