The Hindu Business Line : Mahalaxmi Rubtech plans to raise Rs 25 cr for expansion

The Ahmedabad-based Mahalaxmi Rubtech Ltd plans to raise about Rs 25 crore for its ongoing expansion project, by way of rights issue of equity shares and debt, to achieve its targeted annual capacity of producing 96 lakh meters of fabric and increase its current turnover five times to Rs 60 crore by 2008-09.

The company plans to install a total of 132 looms by June this year by investing Rs 35 crore. It has already spent Rs 10 crore and plans to raise the balance through the rights-cum-debt issue in the next few months, its Chairman, Mr Jeetmal Parekh, told presspersons here.

The company has also procured land in Ahmedabad district for its forward integration project in garmenting and related business in the near future.

Ventures

The company is also engaged in job work for major fabric makers such as Ashima and Arvind apart from making its own fabric.

Mahalaxmi Rubtech Ltd, listed on the BSE, manufactures textile printing blankets, rubber-coated fabrics, hydraulic seals, precision rubber parts and inflatables. It is part of the Rs 150-crore Mahalaxmi Group, set up in 1970, with a 65 per cent promoters' holding.

A sister concern, Mahalaxmi Fabrics, processes about 35 lakh metres of cotton textile annually, while Mahalaxmi Rubtech enjoys more than 50 per cent market share of textile printing blankets in the domestic market, he said.

In its backward integration drive, the company has already set up a weaving and sizing unit and expanding capacities in both textile and rubber divisions.

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