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Forging ties: Mr Yash Birla, Chairman, Yash Birla Group, and Mr P.B. Bhardwaj, Chairman, PB Bhardwaj Group, at a press conference in Mumbai on Thursday. - Shashi Ashiwal

Our Bureau

Mumbai, Aug. 2 Birla Cotsyn Ltd of the Yash Birla group, is to launch its own range of garments and home furnishing textiles through retail outlets by 2008-09, said Mr Yash Birla, Chairman.

“An outlay of Rs 30 crore has been set aside and we will roll out 30 retail outlets in the first year of our operations,” said Mr Birla.

He revealed the same at an announcement of a 50:50 joint venture of the company with the P B Bhardwaj group.

The Rs 315-crore JV is for an integrated textile project to be set up at Khamgaon, Maharashtra. The project will be funded with Rs 155 crore debt and Rs 160 crore equity. Shortfalls will be met by internal accruals.

“An IPO is in the offing by next year, but I cannot divulge details,” he added.

A capital outlay of Rs 300 crore will be made and 2,000 persons will be employed. The project has been granted the MEGA status by the State Government and gets Rs 50 crore in fiscal benefits over seven years.

The spindle capacity will be increased to 60,000, and a dyeing and processing unit will be set up to manufacture finished cloth in a phased manner. One thousand seven hundred and twenty eight rotors will be added to manufacture open end rotor-based cotton yarn and grey fabric will be weaved in 114 looms. January 2008 will see completion of the project when the company will start selling processed fabric, followed by roll out of its branded retail products.

The London-based PB Bhardwaj group manufactures and distributes yarn, fabric and garments, and has interest in steel through out the world. This is the first time they are foraying in to the Indian market for textiles. They already have a steel unit in Nagpur.

More Stories on : Alliances & Joint Ventures | Retailing | Textiles

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