The Hindu : Business : Bannari Amman Spg. taps market

Online edition of India's National Newspaper
Wednesday, Oct 19, 2005

Business

Business

Bannari Amman Spg. taps market

Corporate Reporter

Aims at becoming an integrated textile manufacturer

CHENNAI: Bannari Amman Spinning Mills, a part of the Rs. 1,200-crore Coimbatore-based Bannari Amman group, is expected to complete its Rs. 290 crore expansion schemes of its spinning and weaving divisions besides launching a processing unit by 2007-08.

Addressing presspersons here, the Managing Director, S. V. Arumugam, said the company was proposing to add 75,600 spindles to its existing 29,232 spindles. It was also expanding its weaving facility from 28 looms to 88 looms. The company has two factories — the spinning division in Dindigul and the weaving division in Coimbatore — both in Tamil Nadu.

Mr. Arumugam said that to capitalise on growing opportunities in textiles and to become an integrated textile manufacturer, the company was entering the processing and garmenting/home textile business. It would set up the garment unit close to its weaving division at Annur, near Coimbatore. The company had already identified a location in Cuddalore (Tamil Nadu) for setting up a processing unit with an installed capacity of 30,000 metres a day. The expansion schemes would be completed in all respects by 2007-08.

The Managing Director said, the total cost of expansion and forward integration was estimated at Rs. 290 crore and would be funded through a rupee term loan of Rs. 175 crore from UTI Bank. The balance was being raised through a public issue of 70 lakh equity shares of Rs. 10 each through a book-building process. The price band had been fixed at Rs. 115-135.

The issue opens on October 19 and closes on October 25.

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