Mudra to build Rs 3-bn spandex yarn unit at Silvassa

Tag : Spandex Yarns

Mudra Lifestyle is planning to set up a greenfield spandex yarnproject at Silvassa with an investment of Rs 3 billion, reportsBusiness Standard.
The project with a proposed capacity of three million metre yarnper month will help achieve the targeted capacity of five millionmetres per month from the current level of two million metres. Thecompany imports the yarn from China, South Korea and Japan.
The company, which is planning to start the project by 2009-end, issearching for a finance partner to part-fund the project. Thecompany plans to take a loan of Rs 640 million while promoterswould finance Rs 360 million.
The ongoing expansion envisaging an investment of Rs 2 billion atits Tarapur plant would ramp up the firm`s total capacity to130,000 metres per day of cotton and linen garments.
The company will add capacity to make two lakh garment pieces amonth. If the latest expansion plan is executed, its productioncapacity will reach about six lakh pieces per month.
Mudra is targeting to enhance overseas presence with at least 35%of its turnover in fiscal year 2009 through its planned retailfranchisee stores in the UK, Switzerland and Germany.
Mudra is planning to expand the firm`s presence in the domesticmarket with 200 franchisee retail stores in tier I and tier IIcities across the country by October.
Shares of the company closed down Rs 0.2, or 0.47% at Rs 42.00. Thetotal volume of shares traded at the BSE was 65,961 (Tuesday).