The Hindu Business Line : Gangotri Textiles plans Rs 351-cr expansion

Mr Manoj Kumar (left), Managing Director, Gangotri Textiles Ltd, with Mr Aswine C., Financial Consultant, at a press conference in Mumbai on Friday. - Paul Noronha

Mumbai , Oct 7

GANGOTRI Textiles Ltd, a Coimbatore-based yarn and garments manufacturer, is planning a Rs 351-crore expansion-cum-integration programme.

The project will consist of setting up weaving and processing facilities. It will also augment power generation capacities.

Of the funds earmarked for expansion, Rs 291 crore qualifies for subsidy under the TUF Scheme. The remaining Rs 60 crore will be invested in setting up six wind mills of 1.65 MW each in Tamil Nadu.

The project is to be implemented in two phases. The first phase will see investment of Rs 130.64 crore in the weaving and processing facilities; Rs 78.58 crore in the spinning facilities; Rs 29.53 crore to set up windmills, and Rs 7.83 crore to set up garment manufacturing facilities, adding up to a total of Rs 246.58 crore.

Phase II will see investments of Rs 104 crore in expanding spindlage at an investment of Rs 74.83 crore. Windmills will cost Rs 29.59 crore.

According to Mr Manoj Kumar Tibrewal, Managing Director, Gangotri Textiles, about 30 per cent of its future annual turnover will be earmarked for exports.

The company's total income rose to Rs 179 crore this fiscal from Rs 137 crore the previous year; net profit rose to Rs 3.25 crore (Rs 59 lakh).

On Friday, the Gangotri Textiles scrip closed at Rs 202 compared to the previous close of Rs 200.95.

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