Kanpur-based textiles major, Shri Lakshmi Cotsyn, has earmarked an investment of Rs 2,700 crore for expanding its existing verticals.
The company aims to double its lucrative denim, terry-towel, bed-linen and cotton rich segment production in the next 12-months. The proposed expansion will enable the company to achieve a turnover of Rs 1,400 crore as against the existing Rs 937 crore by June 2010.
The funds will be raised through a combination of equity capital, internal accruals, FI funding and follow-on public offering (FPO).
The company will invest Rs 378 crore in its terry towel expansion to increase its capacity from 3,000 tonnes to 15,000 tonnes per year. The company will invest Rs 75 crore to set up a 12 MW co-generation agri-based power plant for 100 per cent captive consumption and Rs 160 crore in IR fabric manufacturing, Rs 100 crore in black-out curtains, Rs 75 crore in 'Smart Vest' and Rs 350-400 crore in backward integration of its existing verticals.
"Over the past four years, our revenues have been growing at a CAGR of 46 per cent and going forward, we intend to make the company a market leader in all the verticals we operate," Shri Lakshmi Cotsyn's Chairman and Managing Director M P Agarwal told PTI.
The company has drawn up plans to enter into strategic alliances with large buyers within and outside India and expand its dealer network.
"We plan to expand our business into more foreign countries, but our first target is the domestic market," Agarwal said.
To tap the domestic market the company plans to expand its retail outlets from 500 to 1,500 in India by June 2010.Presently, the company has five manufacturing facilities in Uttar Pradesh, Haryana, Uttarakhand and Noida.
The company has recently entered into a joint venture with the Armet Armored Vehicles UK for manufacturing of high-end 360 degree armoured vehicles, a first-of-its-kind in India with bullet-mine and bomb-proof accessories.
