Bombay Rayon to pump in Rs 246 cr for textile project

New Delhi, June 20 (UNI) Mumbai-based Bombay Rayon Fashions Ltd (BRFL) has announced plans to set up an integrated textile project with an investment of Rs 246 crore at Bangalore.

Earlier, the company raised Rs 94.32 crore through an IPO for 1,34,75,000 equity shares of Rs 10 each at a premium of Rs 60 to part-finance the project.

BRFL also received a direct equity investment of Rs 5 crore from Export Import Bank of India (Exim Bank).

With this integrated project with facilities of yarn dyeing, weaving, processing and garment manufacturing, which will go on stream in the second quarter of FY 2006-07, the total manufacturing capacity of the company is expected to go up to 62,000 pieces per day.

One garment unit of 26,000 pieces per day capacity has already been commissioned by the firm in March this year.

The company registered a 150 per cent increase in its net profit at Rs 18.18 crore for the year ended March 31, 2006, as compared to Rs 7.26 crore, recommending a dividend of 10 per cent on the share price of Rs 10 each.

The total income during the period registered a 88.58 per cent growth at Rs 200.35 crore from Rs 106.24 crore in FY2005.

The export sales in 2005-06 was up 16 times and the gross sales shot up by 88 per cent.

BRFL exports its designer shirts to various well known international brands of the US and European countries, a company statement said here.

UNI CS PV GC1218