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Lakshmi Cotsyn plans Rs 993-cr capex for next fiscal

31 Mar 2011 Evaluate

Shri Lakshmi Cotsyn has drawn a capital expenditure plan of Rs 993 crore for its venture into high-margin technical textile and enhancing its denim capacity by next fiscal end. The Kanpur-based company has already tied up Rs 693-crore long-term loans through a consortium of banks led by Central Bank while promoters have invested Rs 125 crore by subscribing to share warrants.


The company will double its denim capacity to 40 million metres and fusible interlining fabric to 25 million metres from 12.5 million metres through Brownfield expansion in Uttar Pradesh. As part of its Greenfield technical textile venture, Lakshmi Cotsyn has entered into a joint venture with a Malaysian company to set up Multi-Spectrum Camouflage Fabric unit of 10 million tonnes a year. This fabric is used largely by the army in battlefields to cover themselves and weapons from the enemy's satellite surveillance.


The Government had recently floated a tender for supply of spectrum camouflage fabrics worth Rs 200 crore. Only international bidders were allowed to participate in the tender process as Indian companies did not have the expertise in production of these fabrics. The company will set up a unit for producing 20 million metres of Blackout Fabric, 50 square million metres a year of flex fabric and 5 million metres of nuclear bio-chemical fibre.

Peers
Company Name CMP
Welspun Living 130.25
Vardhman Textiles 590.10
Arvind 382.55
K.P.R. Mill 930.45
Page Industries 37647.00
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