Birla eyes branded garment retail space

Mumbai, Aug 2: Yash Birla-promoted Birla Cotsyn is set to enter the branded garment retail space by year 2008.

In the first phase, the group will open 31 retail shops in major cities across the country in a year.

The Company today entered into a joint venture with the USD 2 billion P B Bharadwaj Group to engage in a Rs 315 crore integrated textile project that would be set up in Khamgaon in Maharashtra.

The JV, to come up on a 50:50 basis, is being funded with a mix of debt and equity in the proportion of Rs 155 crore and Rs 160 crore respectively.

As part of financing the project, company may also issue an Initial Public Offer (IPO) in next few months. However, a final decision in this regard will be taken only after the structural settlement of the JV, Mr Yash Birla told reporters.

''An IPO is in the offing. But the exact configuration is yet to be chalked out. Our ultimate aim is to come with branded garments in the country's retail space,'' Mr Birla said.

The Khamgaon project, which will come at an initial investment of Rs 315 crore, is slated to increment the current capacity to 60,000 spindles.

Having set an initial focus on the manufacture of open end rotor based cotton yarn, with an installed capacity of 1,728 rotors and weaving of Grey Fabric with 114 looms, the company will enter the finished cloth segment for which a dyeing and processing unit will be set up.

The company has also targetted the booming overseas retail space where the existing distribution network of the Bharadwaj group will be utilised.

The JV project has received a ''mega project'' status from the state government enabling it to avail exemption from paying stamp duty and electricity duty for a period of seven years.

UNI