Gangotri Tex chalksout Rs 351 cr investment

Chennai, May 16: Tamil Nadu-based Gangotri Textiles, makers of Tibre brand trousers and other textile products, has drawn out a Rs 351 crore investment plan, covering expansion-cum-integration facilities.

Announcing the company's entry into the capital market to raise Rs 55 crore to part finance the massive project, Mr C R Vasudevan, President Projects, said the expansion and integration would take place in spinning, weaving, processing, garmenting and installation of windmills.

He said the company 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 proposed to enhance its weaving and processing plant with an average capacity of 51,000 meters per day of suiting and shirting fabric, involving an investment of Rs 130 crore.

Also in the offing is setting up of a state-of-the-art high end garment unit with a capacity of 3,000 pieces per day for men and women apparels with an additional investment of Rs 7.83 crore, he said.

To meet the power requirement, the company proposed to install six more wind mills to generate an aggregate 9.9 MW of power, involving an investment of Rs 60 crore, he added.

He said of the total of Rs 351 crore required for expansion and integration projects, the company has tied-up with nine banks to avail Rs 273 crore and meet the balance with amount raised through the public issue (Rs 55 crore), contribution from subsidiaries (Rs 4.53 crore) and internal accruals of Rs 10 crore.

The public issue of equity shares of Rs Five each through book building process would open on May 18 and close on May 23, he added.

UNI