• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Anna Peter

Mumbai , Aug. 27

S. KUMARS Nationwide Ltd plans to invest Rs 400 crore in expanding and modernising its four textile and apparel businesses over the next two years.

The company is adding a fifth strategic business unit (SBU) for high value cotton fabrics. This, according to Mr Nitin Kasliwal, Managing Director, S. Kumars Nationwide Ltd, "is the most profitable textile segment in the world."

The company has four SBUs — worsted suitings, ready-to-wear, consumer textiles and home textiles. Mr Kasliwal said of the Rs 400-crore to be invested, about Rs 150-175 crore would be funded through promoters' contributions.

The company has invested Rs 100 crore in doubling its fabric capacities — mainly the worsted and home textile capacities. It is also launching a home textiles brand, Carmichael House, later this year and plans to tap the export market. The funds' infusion is intended to kick-start higher growth. Mr Kasliwal said, "Over the next three years, each of the SBUs will be grown. We will be doubling capacity at our worsted fabric SBU, which will have a domestic focus. It (the product) is much more profitable in the domestic market than in the export market."

"In home textiles, we are adding capacity for the export business and will launch three brands in the domestic market at the upper-, mid- and lower-level in the next three years."

He added that the company is hoping to raise the turnover of its home textiles to Rs 300 crore, of which Rs 240 crore would result from exports and Rs 60 crore from the domestic market in the next three to four years. At present, the turnover is Rs 50 crore.

"We are adding about 100 wide width looms and processing capacity for about 40,000 metres a day." The unit is likely to be located near Vapi, Gujarat. Investment into this facility would be around Rs 90 crore. An existing unit at Dewas will also be modernised.

About Rs 50 crore will also be invested in its ready-to-wear business, which will have, in all, five brands, up from the current two — Reid and Taylor and Tamarind.

The brands would address almost all the price point levels, from luxury to mass segments.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Cetex bid to promote Duron engine oil

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line