Swarnadhra Jute Mills to up capacity

Swarnadhra Jute Mills (SJM) has lined up an investment of Rs 4 crore to expand its production capacity by 10 tonnes per day.

SJM has a unit in the Pydibhimavaram industrial estate in Srikakulam district. It started production in December last year and currently produces 10 tonnes of jute twine per day.

"We have invested Rs 9 crore to set up this unit and now we are expanding our capacity to 20 tonnes of jute twine a day with an investment of Rs 4 crore," BV Rama Rao, managing director, SJM, told Business Standard.

During the current year, so far, the company has achieved a turnover of Rs 8 crore and expects it to cross Rs 10 crore by the end of this fiscal. The company is aiming for a 100 per cent growth in sales turnover post expansion. It would raise Rs 3 crore from financial institutions while promoters would invest the remaining, he said.

"The expansion work will complete by the end of March and during the next fiscal we would be able to produce 20 tonnes of jute twine a day which would see our turnover increase to Rs 20 crore in 2008-09," he said. The company gets raw material from West Bengal and sells its products in Andhra Pradesh, Tamil Nadu, Kerala, Orissa and Maharashtra.

SJM also plans to adds a looms division at an investment of Rs 10 crore to this unit for making gunny bags. "Currently, we are selling jute twine to others but once we set up our looms division, more than 60 per cent of our jute twine would be used in our unit for making gunny bags," he said. The company expects to start work on the project in 2009-10.