Banswara Syntex to hike capex to Rs 260cr

Mumbai, 12th October '06 Banswara Syntex Limited (BSL), a vertically integrated textile company plans to further increase its on-going expansions plans by Rs 150 crore aggregating to Rs 260 crore, subject to Board approval. Under its expansion plan, the company plans to add 40,000 spindles and 48 shuttleless looms.

The increased capital expenditure would be financed through term loans tied under TUFS (Textile Upgradation Fund Scheme) and internal accruals. With this expansion plan, the total capacity of spindles will increase to 1.60 lakh and the total number of shuttleless looms will increase to 200. BSL would be importing machinery from China and the same would be functional by Q3FY07.

Mr. R L Toshniwal, Chairman, BSL said, "These expansion plans are part of our strategy to move into a higher value chain. We are moving from being a pure yarn and fabric player by extending our line of operations to a high value-added garments segment."

Meanwhile, the on-going Rs 110 crore expansion plan has progressed as per schedule. The company has already procured 16 new shuttleless looms and are under erection. Further, the construction of power plant project is also on schedule and is expected to start power generation by Q4FY07. Production at second plant at Daman has also started.

BSL also plans to expand its garmenting facility at Surat SEZ in Gujarat where it plans to manufacture 30,000 jackets per month. This garmenting facility is expected to start operations by March 2007. The construction on SEZ plant has commenced; this would take the company's garmenting capacities to 1.75 lakh trousers per month.

About Banswara Syntex Ltd.