Shri Lakshmi Cotsyn lines up Rs 1,300 cr investment

Noida-headquartered Shri Lakshmi Cotsyn plans to infuse

Rs 1,300 crores on capacity expansion, to focus on its terry towel production and yarn spinning operations. “The company is planning to invest Rs 700 crores in terry towel capacity expansion. We have a capacity of 15,000 tonnes per annum currently and post expansion, the capacity will become 33,000 tonnes per annum,” Shri Lakshmi Cotsyn Company Secretary Rakesh Kumar Srivastava said. The expansion would be completed by December, 2013.

The company at present has spinning unit which consists of 35,000 spindles and 5,000 rotors. “Now, it is planning to set up 1.50 lakh spindles and 5,000 rotors to fulfil the total requirement and the estimated investment will be Rs 600 crores,” he added.

The existing capacity is catering to only 35 per cent of the company’s yarn requirement -- 45 tonnes per day out of total requirement of nearly 150 tonnes per day, Srivastava said. When asked how the BSE-listed company plans to fund the investment, he said for the terry towels, it would be a mix of internal accrual of Rs 215 crores and Rs 485 crores via bank loans. SLCL has already invested Rs 135 crore on the business.

The company manufactures terry towels at its Abhaipur facility in Fatehpur district of Uttar Pradesh. SLCL manufactures various home furnishing products, including denim fabric, terry towels, bed linen, cotton fusible interlining and technical textile products.