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TT Ltd, one of the leading integrated textile players, has sold its Gujarat-based ginning factory and oil mill for a total consideration of Rs 19 crore. The company has sold the properties to Pan Agri Export which is into the manufacture and export of agriculture products, raw cotton, cotton seed, castor oil, castor meal and groundnut.
The ginning factory has a production capacity of 600 bales of cotton a day and the oil mill could process about 100 tonnes of cotton oil a month.
Mr. Sanjay Jain, Joint Managing Director, TT Ltd, said the company had decided to sell the ginning unit as the entire business of processing cotton has become unstable with huge volatility in cotton prices. Also, the availability of cotton and cottonseed and the viability of crushing have become an issue.
“TT has chalked out a Rs 150-crore expansion plan in the next two years and the entire proceeds from the sale of assets will be utilised for capital expenditure,” said Mr Jain. TT has a production capacity of three million pieces a month which it plans to increase by 50 per cent over the next three-four years.
The company's share on the BSE was up 14 per cent at Rs 37 on Wednesday.
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