City-based Suryajyoti Spinning Mills has embarked upon a Rs 100-crore expansion-cum-modernisation plan, which is expected to be executed by next year.
The company, engaged in the production of cotton yearn and fabrics, will be adding 25,000 spindles to its existing capacity of 100,000 spindles at a cost of Rs 75 crore.
“We are also modernising our mill at a cost of Rs 25 crore,” executive director, AK Agarwal, told Business Standard.
Kumar said the expansion project will be funded through debt and infusing equity. “We are still working on the funding pattern,” he added.
In 2009-10, Suryajyoti had gone in for forward integration by setting up a 20-million metre weaving and processing unit at a cost of Rs 130 crore. The fabric project commenced commercial production in October 2009 adding to the company’s topline. It achieved a turnover of Rs 269.53 crore during the year as against Rs 209.5 crore in 2008-09.
“We are expecting a turnover of Rs 400 crore this year and Rs 500 crore next year,” Agarwal said. Good demand for the company’s yarn and fabric and also rise in prices of the raw cotton were stated to be contributing to the topline figures.
