The Hindu Business Line : Jagjanani Textiles plans Rs 54-cr expansion

Jagjanani Textiles Ltd (JTL) is going for an expansion and forward integration programme with a total investment of Rs 54.17 crore. It includes setting up a ring spinning unit of 6,000 spindles for manufacturing fine cotton yarn and upgradation of the existing open-end spinning units by installing fancy yarn attachments and doublers to lift yarn capacity from 3,600 tonnes per annum to 4,320 tonnes per annum. The company is also setting up a weaving unit for manufacturing fabric by installing 48 air jet looms to add value to its products. The new facilities will commence production by March 31, 2007.

The project cost of Rs 54.17 crore is being financed by term loans of Rs 28 crore sanctioned by Bank of Baroda (Rs 17 crore) and UCO Bank (Rs 11 crore), unsecured loans from promoters aggregating Rs 3.77 crore, internal accruals of Rs 2.15 crore and a public issue of equity shares aggregating Rs 20.25 crore.

"We are targeting mid November for our public issue. We are waiting for SEBI clearance," said Mr S.G. Vyas, Managing Director, Jagjanani Textiles Ltd.

Major customers include Arvind Mills, Raymond, Soma Textiles, Vardhman Group and Malwa Industries apart from others. For the year ended March 31, the company recorded a turnover of Rs 30 crore and a profitafter tax of Rs 2.10 crore.

"By 2010, we are targeting a turnover of Rs 250 crore," said Mr Vyas. "We are also looking to acquire mills in Rajasthan," he added.

Exports account for 18-20 per cent of the company's turnover. "We expect this to go up because part of our new product mix is export oriented," said Mr Vyas.

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