The Hindu Business Line : Ginni Filaments plans Rs 200-cr expansion

GINNI Filaments Ltd, a 100 per cent export-oriented unit producing yarns and knitted fabrics, is planning to invest around Rs 200 crore by the middle of next year to expand the existing capacity and execute forward integration to its existing areas of business. This includes a new Rs 35-crore processing unit, which is expected to go on-stream shortly, and a greenfield plant for non-woven products.

"We are looking at investing Rs 200 crore till June 2006 to expand the capacity of our spinning, knitting and processing facilities. To fund the expansion, the company may also look at tapping the capital market some time around September-October," the Chairman and Managing Director, Mr Rajaram Jaipuria, told newspersons here.

The company also plans to set up a greenfield facility for non-woven products at an investment of Rs 130 crore and plans to get into the garmenting business to vertically integrate across the textile value chain.

Ginni Filaments, which has been producing yarns and grey fabrics for the last 14 years, has now entered the fabric-processing business with the commissioning of the new processing unit in Kosi, Uttar Pradesh. The new unit is expected to take up the company's turnover from Rs 200 crore to Rs 260 crore, Mr Jaipuria said.

The unit is equipped with dyeing machines from Thies of Germany and finishing machines from Santex of Switzerland. The capacity of the unit is 10 tonnes of processed fabric per day, which would increase to 15 tonnes when the expansion is completed next year.

"The processing unit at Kosi has been commissioned under the EPCG scheme, which will give us the flexibility of selling large quantities in the domestic market," the Managing Director, Mr Shishir Jaipuria, said. Besides, the plant will also help reduce dependence of domestic garment manufacturers on imported processed fabrics, he said.

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