HTTL to focus on domestic market; raises Rs 90cr via IPO

New Delhi, Sep 28 (UNI) After enjoying an overwhelming response from the overseas market, Hanung Toys and Textiles Ltd (HTTL), manufacturer and exporter of stuffed toys and home furnishings, wants to focus on the domestic market.

''About 90 per cent of HTTL's revenues last year were accounted for by its exports but the exposure in the domestic segment needs to be geared up,'' HTTL CMD Ashok Kumar Bansal told reporters here today while announcing the company's Rs 90 crore IPO.

Mr Bansal said that after receiving a good response from overseas markets like the US, Canada, Germany, France and UK, HTTL's main objective now was to grow in the domestic sector as it had a tremendous potential.

Currently, the company's brand of soft toys 'Play-n-Pet' has a 70 per cent share of the organised soft toys market.

The company's exports in the first quarter ending June 30, 2006, contributed for 75 per cent of HTTL's total revenues at Rs 40.6 crore.

Besides, the company today entered the capital market with a public issue of 95 lakh equity shares, with a reservation of 5 lakh equity shares for its employees at Rs 10 each through a 100 per cent book building process.

''The entire amount raised through the IPO will be utilised for the purpose of fabrics weaving, modern process house and textiles made ups at our manufacturing plant in Uttaranchal for which we are investing Rs 168.44 crore,'' said Mr Bansal.

The 25 acre manufacturing facility is expected to be operational by early next year. HTTL plans to raise Rs 90 crore through the public issue and intends to utilise upto Rs 90 crore of the sanction of Rs 135 crore from PNB, OBC and SBI.

The entire rupee term loan is eligible for a 5 per cent interest subsidy under TUFS.

The company has two factories in Noida, one for toys and the other for furnishing. The facility in Uttaranchal would primarily for home furnishings.

However, while focussing on the domestic market, the company will concentrate on its three brands -- 'Play-n-pets', 'Muskan' and 'Splash'. The distribution of the brands will be done through network of distributors and retailers.

HTTL stuff toys are available across the country at more than 3000 retail stores and multi-brand outlets and home furnishings range to more than 20 distributors, who in turn cater to a network of more than 600 retailers spread across India.

HTTL also stated that Bennet Coleman and Co Ltd has acquired 5 lakh equity shares at a price of Rs 150 per equity share for a consideration of Rs 7.5 crore.

UNI KR PV VV1821