The Hindu Business Line : Indus Fila mulls IPO for expansion

The Bangalore-based apparel maker and exporter Indus Fila is planning to tap the capital market to raise money to part fund its Rs 180-crore expansion programme. The company has plans to double its capacity on all fronts in the next 18 months.

"We are ready to file our draft red herring prospectus. But, we are also exploring some private equity options. The decision on our IPO will be taken in the next couple of weeks," said Mr Nitin Mandhana, Managing Director of Indus Fila.

The company plans to increase its textile capacity to 1-lakh metres per day from the current 65,000 metres per day, while the garment capacity will increase to 50,000 pieces per day (20,000 pieces per day).

Export growth

The company notched up a turnover of Rs 83.67 crore and profit of Rs 5.16 crore last fiscal. "Our exports have been growing at nearly 400 per cent. This gives us the confidence to ramp up our capacity," says Mr Mandhana.

Exports stood at Rs 18 crore at the end of the last fiscal and are expected to reach Rs 80 crore by March 2007. As part of its expansion plans, Indus Fila is also looking to acquire an international brand in Europe or the US.

A foray into garment retailing is also on the cards. "We are looking to launch our own brand sometime in the future. We are preparing for a niche area of retail and are looking at the kids wear and infant wear segment," he said.

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