Mumbai, Nov 17 (UNI) Ventura Textiles Ltd, manufacturer and exporter of 100 per cent cotton fabrics, made-ups and home textiles (bed linen), has reduced its equity to present a realistic financial status of the company.
The equity shares have been consolidated to face value of Rs 10 each and the present equity consists of 98,63,857 shares. The company is well positioned to take up beneficial expansion with this equity restructuring, a company release said.
Recently, the Government of India cleared the new Technology Upgradation Fund Scheme (TUFS) for the textile industry. Reportedly, this decision is expected to help the textile sector to achieve the targeted growth rate of 16 per cent and make investments of Rs 1,50,600 crore in the Eleventh Five Year Plan period.
Availing the benefits under TUFS, the company is now poised to achieve rapid growth. It proposes to set up a state-of-the-art wider width dyeing and processing unit, modify its spinning by adding about 20,000 ring spindles and also expand its weaving capacity, thus becoming a fully integrated unit. In the global scenario, post-quota regime, the competitiveness for the textiles industry is largely dependent on integrated manufacturing where 'Raw Material to Finished Product' is produced under one roof at economical cost, adhere to strict quality norms and delivery schedules.
The release quoted Ventura Textiles Ltd's managing director P M Rao as saying ''On the challenges of rupee appreciation vs US dollar, the company will combat decisively with the aid of (a) fully integrated manufacturing facility (b) producing a niche value added product range that includes specialty cottons viz. American Supima, Egyptian Giza, Organic cotton and (c) diversifying the risk by focusing on the European and other markets in export front. With the emerging organised retailing in India , domestic market is another big opportunity for the company. The proposed fully integrated unit will result in lower cost and will simultaneously command high realisation per unit thereby the boosting bottom line.'' The estimated cost of the project is Rs 91.60 crore and part funding is already being tied-up. Post expansion, the company's turnover will increase by 400 per cent resulting to Rs 250 crore, with a mix of export and domestic sales, the release added.