Business Daily from THE HINDU group of publications
Tuesday, Nov 07, 2006
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Business Daily from THE HINDU group of publications Tuesday, Nov 07, 2006 ePaper |
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Corporate
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New Projects Nahar Industrial earmarks Rs 800 cr for expansion Debdatta Das
The company plans to venture into real estate by developing its surplus land in Ludhiana into a residential and commercial complex.
New Delhi , Nov. 6 Nahar Industrial Enterprises Ltd said that it has earmarked about Rs 814 crore as capital expenditure for expansion of its textile facilities and setting up of a 54-MW power plant. It has also floated a wholly-owned subsidiary, Nahar Retail Ltd, for its retail business. "We are going to spend about Rs 814 crore as capital expenditure till 2009 to increase manufacturing capacity of our textile businesses as well as set up a cogeneration power plant to cut out on extra power expenditure," said Mr Kamal Oswal, VC and Managing Director. Out of the total investment, Rs 520 crore would come from term loans under TUF, Rs 199.9 crore from FCCBs, and the remaining Rs 94.1 crore from internal accruals, he said.
Major Focus
"While we will spend Rs 315 crore on our yarn business, Rs 332 crore would be spent on the fabric business and Rs 167 crore on setting up the power plant," Mr Oswal said. The company is also planning major focus on its retail brand Cotton County, a range of menswear. Currently, the company has 140 retail outlets across the country and plans to increase them to 250 by March 2007 and 1,000 outlets by March 2010. "Our retail business currently stands at about Rs 23 crore and we plan to make it a Rs 100-crore enterprise by March 2007, for which we have floated a wholly-owned subsidiary, Nahar Retail Ltd," said Mr Oswal. On the manufacturing front, Nahar Industrial plans to increase its manufacturing capacity of ready made garments for its retail brand from the current 6,000 pieces per day to 50,000 pieces per day of which about 30 per cent will be outsourced. Mr Oswal said that the company plans to increase the cane crushing capacity of its sugar business from 2,500 canes per day to 4,000 canes per day. The company expects to garner revenues worth Rs 70-80 crore by March 2007 from this business.
Real Estate Venture
The company also plans to venture into real estate by developing its surplus land in Ludhiana into a residential and commercial complex. "We are going to utilise the surplus land we hold in Ludhiana by developing a residential block and commercial complex there, for which we are already in talks with a number of builders and the final decision will be taken within three months. It had clocked Rs 700 crore as turnover in 2005-06 and is looking to achieve Rs 950-Rs 1,000 crore by March 2007, of which 10 per cent will be from exports of yarns and fabrics.
More Stories on : New Projects | Textiles | Real Estate & Construction
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