The Hindu Business Line : CLC Global units plan capacity expansion

THE textile market in the country is witnessing one of its most buoyant periods, with even medium and small companies expanding capacity and diversifying operations.

One such company CLC Global Ltd is expanding spinning capacity at its divisions, Cimmco Spinners and Spentex Industries.

According to the Managing Director, Mr Mukund Choudhary, CLC is preparing to set up two lakh spindles in the next 18-24 months and expand weaving capacity to 1 lakh metres a day. At present, Cimmco Spinners has 27,000 spindles, and Spentex 30,000 spindles. Cimmco Spinners will add 50,000 spindles in a joint venture with a large integrated manufacturer, the output of which will be used for the latter's processing needs. The additional capacity will be ready in July 2005.

Cimmco was acquired from the S.K. Birla group and, Mr Choudhary said, turned around in a matter of months by fully utilising capacity and focusing on marketing efforts.

Forty per cent of Cimmco's production is exported and the rest is sold in the domestic market.

Spentex was taken over from the RPG group in January 2004 and has been similarly turned around. Spentex will add 45,000 spindles, bringing its total capacity to 75,000 spindles. This expansion will cost the company Rs 80 crore.

He added that the revival had boosted the scrip's value for shareholders, with the stock traded at Rs 18.5 on Tuesday, up from the 60 paise when it was sick.

Mr Choudhary said Spentex was on course to post a turnover of Rs 75 crore for 2004-05 against Rs 36 crore in 2003-04.Following its acquisition, productivity rose by 20 per cent.

CLC Global has a turnover of Rs 500 crore of which its textile manufacturing operations account for Rs 300 crore. It also exports cotton yarn and fabric to the US, South America, Israel, Australia and Europe.

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