Mumbai, Nov 13 (UNI) Bombay Rayon Fashions Ltd (BRFL), a market leader in garments and fabrics, today signed an MoU with Maharashtra government towards expanding its fabric and garment-making capacities by setting up new facilities in rural parts of the state.
The new facilities that will come up at Tarapur, Islampur, Ichalkaranjee and other lesser developed areas of Maharashtra like Latur, Nanded and Osmanabad, will be at an investment of Rs 1,100 crore.
Of the total amount, Rs 400 crore would be raised through equity and another Rs 700 crore from debt. Yarn dyeing and weaving would see an investment of Rs 450 crore and fabric processing Rs 400 crore.
The first factory with 1,200 machines will start in Ichalkaranjee, prominent powerloom capital of the state, within three months. While rest of the facilities will start production by September 2008.
The new initiatives will see major expansion in yarn dyeing, weaving, processing and garment capacities. Adding fabric processing capacity of five lakh metres per day and garment capacity of 1,00,000 garments per day.
Addressing a news conference here today, BRFL managing director Prashant Agarwal said the company presently employs more than 30,000 people in its various units spread over Mumbai and Bangalore. With the addition of these capacities, potential direct employment generation would exceed to 32,000.
He said presently BRFL has fabric processing capacity of 1,50,000 metres per day and garment capacity of 1,00,000 garments per day in Karnataka. However, BRFL has chosen to undertake major expansion in its capacities by setting up Greenfield units for yarn dyeing, weaving, processing and garmenting in Maharashtra.
The MoU was signed by Mr Agarwal and Industries secretary V K Jairath in the presence of Chief Minister Vilasrao Deshmukh, Finance Minister Jayant Patil, Marketing Minister Harshvardhan Patil and Industries Minister Ashok Chavan.
Speaking on the occasion, Mr Deshmukh said the state has taken giant strides towards development, as 78 megaprojects with an investment of Rs 73,000 crore are being set up in the state. It is important to note that BRFL is investing in backward regions of the state.
Jayant Patil felt that BRFL's investment would usher in prosperity in rural Maharashtra.