Nirvan Silk Mills plans IPO to fund expansion

Our Bureau Mumbai | Updated on April 07, 2011

Nirvan Silk Mills will tap the capital market to fund its plans for setting up yarn dyeing, sizing and processing units. The company recently enhanced its weaving capacity at Tarapur in Maharashtra to 14 lakh metres from 10 lakh metres at an investment of Rs 18 crore.

Mr Kapal Mehta, Director, Nirvan Silk Mills, said the company had enhanced its weaving capacity in just six months and would now invest Rs 50 crore in setting up yarn dyeing, sizing and processing units on the four acres of surplus land at Tarapur.

“The annual turnover of the company is expected to touch Rs 125 crore by next fiscal from Rs 75 crore currently. We also plan to enter the capital markets with an IPO in the near future,” he said.

Nirvan Silk Mills has a pan-India presence and exports to Saudi Arabia, Dubai, Thailand, Malaysia, Indonesia, Vietnam and Cambodia. Exports account for about Rs 10 crore, which would be enhanced to Rs 20 crore next year, he said.

As the manufacture of linen fabric is tough, requiring high-tech infrastructure, there are very few manufacturers of linen fabric in India. The Mumbai-based company's La-Fair linen shirts are made in over 300 designs, using yarn imported from Austria and Belgium. Linen fibres are durable and three times stronger than cotton. Linen is the least elastic natural fabric and does not wrinkle easily. It is suitable for summer wear, as it allows the body heat to escape, leaving a cool, soothing effect, said Mr Mehta.

The company also makes 100 per cent cotton and blended shirts under the brand name Moksh, while its fancy shirts are branded Nirvan.

Published on April 07, 2011

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