The Hindu Business Line : Welspun India net rises by 33 per cent

THE net profit of Welspun India Ltd has increased 33 per cent for the year ended March 31, 2004 to Rs 30.02 crore over Rs 22.39 crore in the year ago period.

Net sales grew 22 per cent to Rs 366.74 crore (Rs 301.01 crore). Other Income grew to Rs 7.74 crore (Rs 2.23 crore).

The company recently announced plans for expansion. The project will be set up at Kutch-Anjar (Gujarat) and is estimated at Rs 499 crore. As a part of these plans, Welspun will add a spinning unit to increase backward integration, which will considerably enhance the company's scalability in the long run. Private equity of Rs 95 crore, promoters' equity of Rs 15 crore, internal accruals of Rs 63.67 crore, and term loans of Rs 325 crore are expected to fund the project.

Mr B.K. Goenka, Vice-Chairman & Managing Director, Welspun India, said, "Today's global economy provides opportunities for increased international trade and creation of economic wealth. The MFA phase out will bring additional opportunities and challenges for us on the domestic and the international market. Also the demand gap created due to the closure of some units in the home textile industry, particularly in the US, has prompted companies in India to expand their facilities to cater to the demand gap.