SILK fabric manufacturer and exporter Himatsingka Seide Ltd plans to invest Rs 400 crore in setting up a bed linen fabrics unit at the Hassan Special Economic Zone in Karnataka.
The company expects to finance this new unit through internal accruals and a term loan, Himatsingka said in a press release.
Himatsingka intends to take a term loan under the government's Technology Upgradation Fund scheme.
The Karnataka Government has allotted 100 acres at Hassan SEZ for Himatsingka's new unit that will have a capacity of 20 million meters per annum.
Construction activity at the new project is expected to start by September and the project is likely to be completed within 12 months, the company said.
On reaching full capacity, the turnover of this new unit will be around Rs 475 crore, the company said. With this proposed investment, Himatsingka is targeting a turnover of Rs 700 crore by 2007-08.
For the first quarter ended June 30, Himatsingka posted a 11-per cent increase in its net profit at Rs 11.27 crore, compared to Rs 10.11 crore in the corresponding period last year. Sales revenues for the quarter increased 11 per cent to Rs 34.17 crore from Rs 30.79 crore in the corresponding previous quarter. The sale of fabrics during the quarter was up 10 per cent at Rs 28.85 crores, against Rs 26.25 crore in the corresponding previous quarter.