The Hindu : Business : Minar to set up processing unit

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Friday, Sep 22, 2006
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Minar to set up processing unit

Corporate Reporter

Machines to be imported from Switzerland for the SIPCOT unit

CHENNAI: Minar International Limited (MIL), engaged in exporting home textiles, is setting up a wider width fabric processing unit at SIPCOT industrial growth centre, Perundhurai, Erode, Tamil Nadu, at a cost of Rs. 73.31 crore.

The company has now been catering to the export market through outsourcing of processed fabrics.

It is processing the fabrics further in its two cutting machining and trimming (CMT) units in Thane industrial area.

To meet the expenditure on the new processing unit, the company will be entering the capital market on September 25 with an initial public offer (IPO) of 69.23 lakh equity shares of Rs. 10 each through the 100 per cent book-building process with a price band of Rs. 108-115 per share.

The issue closes on September 29.

Minar International had already made a pre-issue allotment of 10.77 lakh equity shares to Bristol Associates of the U.S. at a price of Rs. 150.28 per share and to Sunham Home Fashions, also of the U.S., at Rs. 148.84 per share.

Addressing presspersons here on Thursday in connection with the IPO, U. K. Nambiar, Chairman and Managing Director, said the setting up of the processing unit would enable the company to have its own full-fledged facilities.

Our Delhi Correspondent writes:

The company had already acquired 22.13 acres in SIPCOT industrial area under 99-year lease to put up its processing plant. When finished, it would produce 60,000 metres a day, R. Sankarakrishnan, Director, said adding that the unit would import processing machines from Switzerland-based Benninger, Osthoffs, Kusters and Monforts of Europe at a cost of Rs. 46.77 crore.

Minar International, which clocked a turnover of Rs. 336 crore and a net profit of Rs. 14.40 crore in 2005-06, would also launch its products in the domestic market in the next 10-12 months.

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