Abhishek Mills Ltd to come up with new Rs 220 cr project

Kolhapur, Jan 14 (UNI) Abhishek Mills Ltd (AML), a cent per cent export-oriented yarn manufacturing unit located at city's outskirts, Tamgaon village, has planned to launch a new Rs 220 crore project on intergrated yarn dyed shirting fabric to tap growing domestic and overseas market.

Abhishek Mills' Managing Director Annasaheb Mohite told mediapersons yesterday, the proposed project's production would start from next year with an annual production capacity of 80 lakh meters, and the annual turnover is expected to be around Rs 210 crore with a profit of about Rs 25 crore.

The capital for the project would be raised through bank loan of Rs 150 crore, Rs 50 crore from IPO and the remaining from other sources, Mr Mohite said.

He said the company was coming up with an IPO sometime in next month and added that the company would provide jobs to scores of people.

AML intends to operate in higher segments of textile value chain, resulting into higher margins, on account of integration, cost advantages, better quality and low turnaround time, he said.

He said the company planned to market its fabric to garmet exporters directly in export market.

Considering the potential for growth in apparel fabric under the quota-free regime, AML is expanding its capacities to enter into these areas to cater to the needs of the global, retail giants, labels, importers, he pointed out.

Set up in 1999 with an initial capacity of 13,104 spindles, Abhishek Mills Limited expanded its capacities in 2003 to 25,920 spindles including 2,016 spindles of compact spinning. And in 2005, it introduced value-added facilities like autoconer, fos, spingeing in 2005. AML added 7,200 spindles that became operational from April last year, he said.

Currently, AML has 33,120 spindles, producing cent per cent combed cotton yarn and can manufacture yarn with finer counts in the range of 40s to 120s, he added.

UNI