The Hindu : Business : Birla Cotsyn to set up textile unit

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Thursday, Jun 26, 2008
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Birla Cotsyn to set up textile unit

Special Correspondent

MUMBAI: Birla Cotsyn (India), a company of the Yash Birla Group, engaged in textile manufacturing, is now setting up an integrated textile unit estimated to cost Rs. 320 crore at its facilities in Khamgaon, Ghatanji & Malkapur.

Price band

The company plans to enter the capital market with an initial public offering (IPO) of Rs. 144.18 crore to fund the above project. The company has fixed a price band of Rs. 15-18 per share of the face value of Rs. 10 each. The issue opens on June 30 and closes on July 4.

The proceeds from the issue will be utilised to set up an integrated textile unit and a garment manufacturing plant at the company’s facilities located at Khamgaon, Ghatanji & Malkapur in Maharashtra. It will also fund the company’s foray into retail outlets which it plans to set up pan-India.

Yash Birla group had entered into a 50:50 joint venture with the P. B. Bhardwaj Group.

This joint venture will enable both the partners to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products.

The company is in the process of setting up a 36,000 cotton spindle yarn manufacturing unit at Malkapur. Commercial production in phase-I has commenced.

The company is setting up a readymade garment manufacturing unit and entering the retail garment sector by establishing 20 retail outlets across the country.

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