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Our Bureau

Coimbatore , Sept. 25

GANGOTRI Textiles Ltd has drawn up an investment plan of about Rs 350 crore for establishing an integrated weaving, processing and garmenting facility to be implemented over two years.

The project outlay also includes establishment of windmills with a total generation capacity of 9.9 MW near Udamalpet in Coimbatore district.

While the company proposes to avail itself of a loan of Rs 280 crore from financial institutions/banks, it has also planned to mobilise Rs 55 crore through a fresh public float that is likely to hit the market by December/January. Internal accruals/subsidy will account for the balance Rs 16 crore of the capex planned.

After the conclusion of the company's AGM and EGM here on Saturday, Mr Manoj Kumar Tibrewal, Managing Director, Gangotri Textiles, told newspersons that leading international brands coming to India for outsourcing were not looking for fabrics but wanted suppliers who could supply garments in large volume within a tight schedule. He said the company would capitalise on this opportunity by having an integrated facility that could execute orders based on the design of the customers and deliver the final product in time. The new facility will produce garments using both cotton and blended fabrics.

Sops from TN: He said the company would be taking advantage of the Tamil Nadu Government's scheme of `structured financial package to mega investments.' The Government provided this assistance on a case- to-case basis if the investment is more than Rs 300 crore. .

The weaving and processing facility would come up in the SIPCOT industrial complex at Perundurai in Erode district. He said the financial closure for funding the project would be achieved before October-end.

Public issue: On the proposed public issue, the company's MD said the size of the public float would be Rs 55 crore including the share premium. The price band and the number of shares to be issued will be finalised later.

Mr Tibrewal indicated that the public issue would hit the market by December 2005/January 2006. Apart from the BSE where the shares are traded, the company would also opt for listing its shares on the NSE. He said in the new project, modern looms would be installed to manufacture high quality yarn.

Mr S. Vasudevan, President, Projects, said the sales turnover of Gangotri Textiles was projected to go up to Rs 309 crore in 2006-07 and Rs 452 crore in 2007-08.

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