Mauritius-based FVCI takes 10.71% equity in S P Apparels

Chennai, Nov 24 (UNI) New York Life Investment Management India Fund, a Mauritius-based Foreign Venture Capital Investor (FVCI) today has taken 10.71 per cent of equity share in the Coimbatore-based S P Apparels Limited, India's major exporters of knitwear.

Announcing this at a press conference here, S P Apparels Chairman and Managing Director (MD) P Sundararajan said the company has diluted 18 lakh shares to FVCI at the rate of Rs 200 per share, aggregating to Rs 36 crore.

"With this dilution, the company's paid up capital has gone up to Rs 16.80 crore from Rs 15 crore, with the private equity infusion valuing the company at Rs 336 crore", he said.

He said the funds would be utilised to further accelerate the growth and add new garment making capacities with state-of-the-art manufacturing technology.

The company proposed to set up a knitting and spinning unit with a capacity of 50,000 spindles and also a renewable energy project-wind mill with a capacity of 10 MW to reduce power cost, involving a total investment of about Rs 235 crore. The first phase of the project with a 12 tonne capacity was already in operation and it would be ready for production in January 2008, he said.

The private equity and internal acruals, would be utilised to fund the project in the first year and the company entering the capital market to raise money in future was not ruled out, Mr Sundararajan said.

The company earned a turn-over of 200 crore last year, with 95 per cent coming through exports. This year, in the first six-months, the turn over touched Rs 125 crore and the company hoped to finish the year with an estimated rate of Rs 250 crore, he added.

Besides the success in exports, S P Apparels had drawn up ambitious plans for its foray into the domestic retail market as well. To provide the necessary impetus to its retail plans, the company has taken a controlling stake in Crocodile India, he said.

Jacob Ballas Capital India, Chairman Jetley, the investment advisor to FVCI, said the investment represented a strong partnership with S P Apparels.

UNI WS VR 1722