Hyderabad-based textile firm, Suryavanshi Spinning Mills, is eyeing revenue of Rs 500 crore by 2013-14 and has planned a total capex of around Rs 130 crore to fuel its expansion plans, a top company official said.
"We have planned a capex of around Rs 130 crore, which we would be spending over the next 18 months for our overall expansion plans in the spinning and garment business," the company's Managing Director J K Agarwal told PTI here.
The company has earmarked around Rs 75-80 crore to set up a unit in Andhra Pradesh with a capacity of 30,000 spindles.
At present, Suryavanshi has three units in Bhongir, Aliabad (Hyderabad) and Rajna (Madhya Pradesh), with an aggregate capacity of more than 1,00,000 spindles and a production capacity of 45 tonnes per day.
The company would be spending around Rs 10 crore for enhancing its garment manufacturing capacity from the current 25 lakh pieces to 35 lakh pieces in the next 12 months.
"We are seeing a strong demand environment across the textile sector and are extremely bullish about the future of the industry. With our expansion plans in place, we are sure that we will be able to achieve the topline growth of Rs 500 crore by FY14," Agarwal said.
The company is eyeing a turnover of Rs 300 crore by this fiscal-end.
On its fund raising plans, Agarwal said, "We are already in talks with few bankers. We will adopt a combination of debt and internal accruals for raising funds."
The BSE-listed company also plans to foray into the power sector.
"We plan to invest around Rs 130 crore for setting up a 25-Mw coal-based plant in Andhra Pradesh. Initially, the power would be used for self consumption. But going forward, we plan to connect the extra power generated to the grid," Agarwal said.
However, he said the company was awaiting fuel linkages as well as environment clearances from the government. "Once we receive the necessary approvals, we will go for financial closure," he added.
