Mumbai, May 18
KSL & Industries has announced that it would undertake major expansion and invest Rs 600 crore to this effect.
According to Mr Saurabh Kumar Tayal, Chairman, KSL & Industries, the formalities to obtain technology upgradation funds have already been completed.
The company seeks to get Rs 400 crore in funds through this means. Of the remainder, 66 per cent will be funded through debt and the rest through internal accruals.
The company will expand existing textile capacities. It currently has a spindleage of 65,000 and 200 knitting machines. The expansion will increase spindleage by an additional 1.5 lakh spindles to manufacture cotton yarn.
The expansion will take place at Kalmeshwar in Nagpur, where the company has already acquired land. The company will install a captive power unit for its energy needs.
With the investment, the company also hopes to expand its knitting, processing and garmenting capacities.
According to Mr Tayal, "The expansion will help us meet growing international demand for textiles."
The expansion project has already begun and production would begin in March 2006, he said.
According to Mr Ramit Aggarwal, Managing Director, KSL & Industries, the company's order book position had increased substantially since the end of the quotas on January 2005. He said that potential buyers were also looking at the company to fulfil orders because it had integrated units and could deliver quality products consistently.
He added that the company was also trying to lower prices to be cost-competitive in the global market.
For the year ended March 31, 2005, the company achieved net sales of Rs 153.62 crore, up by 76 per cent over the previous year.