Gangotri Textiles to bring follow-on public issue

New Delhi, May 11: Coimbatore-based Gangotri Textiles Ltd (GTL) is entering the capital market with its follow-on public issue of 11 crore equity shares of Rs five each to aggregate Rs 55 crore to part finance its Rs 351 crore investment plans.

The investment plans cover expansion-cum-integration of facilities in spinning, weaving, processing, garmenting and installation of six windmills to save on power costs.

The total investment structure involves Rs 55 crore through the public issue and the remainder will be through low cost debts including availing of 5 per cent interest subsidy from Technology Upgradation Fund Scheme (TUFS) for the purpose.

The price band will be unveiled one day before the opening of the issue on May 18 which will close on May 23, 2006 and the public issue would be through the book-building route, Mr Manoj Tibrewal, Managing Director, GTL, told reporters here today.

GTL clocked a turnover of Rs 178.5 crore during 2005-06.

GTL, the manufacturer of the 'Tibre' brand of trousers, plans to expand and forward-integrate by setting up a ring spinning unit of 19,200 spindles to produce 2/30s polyester cotton yarn and another unit of 31,200 spindles to produce 2/40s polyester cotton yarn.

The company also has plans to enhance its weaving and processing plant with an average capacity of 51,000 metres per day of the suiting and shirting fabric and set up a modern garment unit with a capacity of 3,000 pieces per day, for both men and women apparels.

Another 20 to 25 new products are proposed to be introduced along with the existing range of its 'Tibre' brand and the company also plans to export 30 per cent of fabric production through export agents.

Mr Tibrewal said, ''our main focus is on the domestic market aimed at making available the international standard products at affordable price to the Indian consumers, without compromising with the quality and core values of the company.'' Soon the Tibre brand products will be available in the northern region also. It has recently introduced its products in Chandigarh which received an overwhelming response, he added.

The company will be selling the Tibre brand garments through its network of over 750 retailors in various states of the country. It also proposes to set up distribution network in all the region who would distribute fabric to garment exporters as well as garment manufacturers.

UNI