Konark Synth plans Rs 30 cr unit at Vapi

Konark Synthetic will invest Rs 30 crore to set up a new plant near Vapi in Gujarat to produce fancy yarn for home furnishing fabrics.

The company has applied to the Gujarat Industrial Development Corporation (GIDC) for 10,000 sq metre of land for the project. The proposed weaving unit will be constructed on about 20,000 sq ft, said sources close to the development.

"The work has already started on the project and should be completed by June 2006," said Manohar Sharma, vice-president, Konark Synthetic. But he was tight-lipped on the details of the project.

Sources, however, say that the company also plans to set up an administrative unit at the new plant. The project will be financed through a rights issue, which the company plans in the 'near future.'

The Mumbai-based company has been in the speciality yarn business for 25 years. While most of its clientele are domestic, Konark has international presence in countries such as Turkey and China.

The company had a gross sales of Rs 12.7 crore in the first half of this fiscal and a net profit of Rs 1.64 crore. In the 2004-05, Konark reported a gross sales of Rs 22 crore and net pofits stood at Rs 70 lakh.