Supreme Yarns plans Rs 200 crore programme

Chandigarh, Apr 28 (UNI) Ludhiana-based Supreme Yarns Ltd is embarking upon major expansion and modernisation programme with an investment of Rs 200 crore spread over a period of two years, Company's Chairman Ajay Mahajan said here today.

After the expansion, the new projects would be 100 per cent export oriented units (EOU), he said.

The company proposes to seek the status of 'Mega Project' under the Mega Projects Scheme of the Punjab government to avail the benefits available under the scheme as the proposed project size is more than Rs 200 crore, he added.

Supreme Yarns Managing Director Sanjay Gupta said the company has crossed a turnover of Rs 116 crore for the year ending 2005-06 against Rs 111 crore for the previous financial year.

Giving details of the expansion programme, Mr Gupta said out of the total Rs 200 crore, Rs 123 crore would be spent on the enhancement of the spinning capacity, Rs 61 crore on putting up a composite unit to manufacture 25, 000 knitted garments for the export markets, Rs 15 crore for expansion of dye house and Rs 5 crore for the modernisation of existing spinning plant.

The company also plans to come out shortly with a fresh issue of capital at an appraised premium for these projects, he added.

The company, a joint venture between Punjab State Industrial Development Corporation and Supreme Group of Ludhiana, manufactures cotton, synthetic and blended yarns.

UNI DP PV PC1849