Priyadarshini Spinning Mills Ltd (PSM), has announced
plans for aggressive modernisation and expansion of its
capacity to gear up to meet the market opportunity thrown
up by the opening of the quota regime.
company plans to invest Rs.40crore towards modernisation
and expansion to enhance its spindle capacity from 60,000
units at present to 82,000 units. The company will also
increase capacity of its dye house from 45 tonnes to 135
tonnes per month. Of the Rs40 crore, Rs32 crore would
be from loans and Rs8 crore from internal accruals.
of the present set up will help Priyadarshini reduce cost
by 10 per cent. The company had made an investment of
Rs9.27 crore in earlier in 2004-2005.
on the occasion Harish Cherukuri, managing director PSM,
said, " The textile industry will witness a massive
demand for all kinds of products from yarn to finished
garments. Not only will this demand be from the export
market, but the domestic market is expected to have a
potential of $55 billion by 2010 .The envisaged expansion
and modernization will help us effectively garner some
of the market share."
has also applied for a rights issues of 3,78,0000 equity
share of Rs10 to raise capital worth Rs945 lakh to meet
working capital requirements. The shares will be allotted
at a premium of Rs15 and would be offered in the ratio
of 5:3 (three shares for every five shares held). The
application is pending with SEBI for approval.
proceeds from the issue would increase the equity from
Rs6.3 crore to Rs10 crore, needed for NSE listing, Srinivas
Kodali, executive director of the company, said.
rights issue is expected to hit the market by the end
of October. And its share is presently traded at Rs47
company registered a turnover of Rs139 crore during 2004-05
as against Rs142 crore last year. Due to a change in product
mix in favour of low-volume high-value output and induction
of corporate clients, profits have increased significantly.
The profit after tax (PAT) stood at Rs 2.4 crore during
2004-05 (Rs39.71 lakh).
textile industry contributes 20 per cent of the total
production industry in India. The textile industry contributes
to 27 per cent of the total exports. Indian share of the
global textile exports at present
is at 3-4 per cent, expected to double to 8 per cent by
2010, the domestic market at present stands at $25 billion
and expected to grow to $55 billion by 2010.