The Hindu Business Line : Mohit Industries zooms on expansion plan

Yesterday, the polyester viscose yarn and fabrics manufacturer announced an expansion plan, proposing to double its art silk grey fabric manufacturing capacity and increase yarn processing capacity by 70 per cent, apart from diversification into furnishing fabric readymade garments.

Mr Narayan Saboo, Managing Director, told Business Line from Surat that the first phase of expansion in yarn and fabrics at its plants in Gujarat and Silvassa would start in June 2007 and is scheduled to be completed by March 2008.

The diversification projects are also slated to begin during the same time. The total cost of all the projects is estimated at Rs 90 crore, which is to be funded by debt (Rs 40 crore) and fresh equity issue (Rs 50 crore).

The new garments and furnishing facilities would be located at Sachin SEZ near Surat.

A group company, which has already acquired 6,000 sq m at the SEZ, is in the process of transferring the land to Mohit for Rs 14 lakh, Mr Saboo said.

Preparation for fund raising and placement of orders for machinery/equipment has been initiated, he added.

While the garment unit will have total projected capacity of 1.2 lakh pieces per month after completion of the phased-out expansion project.

The garment unit will start with 30 per cent of projected capacity from April 2008 at the end of the first phase.

The total envisaged capacity for furnishing fabrics is 75,000 meter per month. Around a third of this would be available in 2008-09, he said.