Morarjee Textiles plans Rs 100 cr expansion

Morarjee Goculdas Spinning and Weaving's textile business in its new avatar "" Morarjee Textiles "" is currently on a Rs 100 crore expansion ride. Morarjee Goculdas, India's oldest listed textile firm, is living a 'second life' after making a comeback in the black this year. Morarjee also rewarded its shareholders with dividend for the first time since 1998.

The company's textile business under the Morarjee Textiles fold is divided equally between high-end shirting fabric and premium voiles under two divisions "" Morarjee Brembana and Morarjee Mills "" respectively. The company expects to increase its production capacity to 25 million tonne from the present 17 million tonne by the end of 2006.

Production of shirting fabric will rise to 10 million tonne from 7 million tonne, and that of voiles and printed fabric will grow to 15 million tonne, from 10 million tonne. The company's expansion plans also include setting up of a captive power plant in Nagpur.

A part of the Rs 3,600-crore Piramal Enterprises, Morarjee has set up a wholly-owned subsidiary - Morarjee International - in Europe.

The arm is based in Legnano, Italy. In addition to its main focus on catering to the marketing needs of its European clients such as Zara, the international arm also boasts of a design studio "" a rarity among Indian fibre manufacturers.

"As part of our forward integration plan, we have set up an apparel-manufacturing unit in Bangalore. The facility, an outsourced manufacturer for brands like Tommy Hilfiger, Espirit and Massimo Doti, specialises in ready-to-wear garments for women, men and children," said Pramod Gothi, managing director, Morarjee Textiles.

The Rs 146-crore entity, said Gothi, now looks to double its turnover every three years.

"The capacity of the Bangalore unit will be expanded within three months," he added. Morarjee Textiles, which is among the few to manufacture fabric used in the making of guthra "" the Arab headgear, exports 50 per cent of its produce to a sizeable market pie in West Asia.