Financial Daily from THE HINDU group of publications
Tuesday, Mar 21, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 21, 2006 |
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Markets
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Stock Markets Industry & Economy - Textiles Priyadarshini Spinning jumps on growth plans Jayanta Mallick
Kolkata , March 20 Priyadarshini Spinning Mills has begun to gather momentum in its forward movement on Dalal Street riding on its aggressive growth plans. The stock today finished at Rs 28.35, up 2.35 per cent, on the BSE after seeing the day's peak at Rs 29.50. The stock has appreciated by 6.58 per cent in the last one week. Today's volume (75,492 shares) was also higher than the 2-week BSE average (53,230 shares).
New foray
The Hyderabad-based company is entering ready-made garment business. Mr Harish Cherukari, MD, confirmed to Business Line that apart from additions in spindles and increase in dyeing capacity, it was preparing to set up a shirt unit at the Garment Park in Hyderabad. "Twelve acres of land have just been bought at a cost of around Rs 2 crore. Commissioning of the 3000-shirts per day unit is expected by December 2006. An investment of Rs 15 crore has been planned for this. Another Rs 10 cr has been estimated for doubling the capacity at a later stage," the MD said. A combination of debt, internal resources and equity placement could fund the total project cost of around Rs 25 crore, indicated Mr Srinivas Kodali, ED.
Spindle & dyeing capacity
Mr Kodali said that additions of 15,000 spindles at a cost of Rs 40 crore would be completed by May 2006. "It would take the total to 82,000 spindles. After expansion, 31,000 spindles will be deployed for producing cotton yarn and the rest for synthetic yarn," he added. Priyadarshini's current client list includes names such as Raymond, Ariva, Donear and Siyarams and it also exports to Italy, Spain, Turkey and Japan. The company has planned to tie up with domestic and international brand owners for marketing shirts. According to market analysts, expansion and the garments biz is likely to have a positive impact on the 2006-07 balance sheet of the company.
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