Banswara Syntex plans 2nd 15/18MW Thermal Power Unit

Banswara Syntex Limited (BSL), a vertically integrated textile company, has announced its plan for an additional 15/18 MW thermal-based power plant at Banswara (Rajasthan) at a capital expenditure of Rs 50 crore.  The power generation on this plant is primarily for internal consumption and if found surplus for sale. The company already has a similar 15/18 MW thermal power plant operating successfully for more than 2 years. 

The new thermal-based power plant is expected to cash in about Rs. 15 crore on an annual basis from Q1FY12 onwards. For the power plant, BSL plans to consume imported and indigenous coal. Moreover, this will also avail a 10-year tax holiday for the profit of this power plant unit.

Commenting on the set-up of additional 15/18MW thermal power plant, Mr. R. L. Toshniwal, Chairman and Managing Director, Banswara Syntex Limited said,              “We have decided to chalk out an additional 15/18 MW thermal power plant to meet our increased capacity requirements along with the savings from the power plant will see the volumes grow with leveraged operating efficiencies for BSL.”

Expansion Plan Status

Banswara Syntex Limited had recently announced the further expansion, modernization and diversification plan of Rs. 60 crore. The segment-wise capital expenditure is :  Spinning Plant (18.68 crore); Dyeing Plant (6.29 crore); Fabric Weaving Plant (8.19 crore); Jacquard Furnishing Fabric (9.22 crore); Fabric Processing Plant (8.07 crore) and Readymade Garment Unit (9.55 crore). The company has decided to fund the capex plan through term loan of Rs 48 crore and Rs 12 crore through internal accruals.

Banswara Syntex has currently diversified its Fabric business towards the Jacquard and Technical textile like Laminated Fabric, Fire Retardant Fabrics, Water Repellant Fabrics, Anti Fungus and Anti Bacterial Processing, Wash and Wear Fabric to name a few.

Half Year Performance

For the half-year ended September 30, 2009, the company has posted a 13.50 per cent rise in Net Sales at Rs 307.26 crore compared to Rs 270.72 crore in the corresponding period last year. Net Profit during this period has increased to Rs 13.86 crore from mere Rs 0.09 crore in the corresponding period last year ended September 30, 2008.

 “Higher contributions from garments and fabrics coupled with decline in power costs would enable the company achieve significant improvement in net profit margins”, added Mr. Ravi Toshniwal, Joint Managing Director, Banswara Syntex Limited.

About Banswara Syntex Ltd.

(Reuters Code: BANS.BO; BLOOMBERG: BWSL.IN; BSE Scrip Code: 503722;

NSE Scrip Code: BANSWRAS)

Banswara Syntex Ltd. (BSL) is a vertically integrated textile player engaged in the manufacture of man-made synthetic, blended yarn, wool and wool mixed yarn, all types of suiting and jacquard furnishing fabrics, besides production of trousers, jackets and made-ups.  The current installed capacity of its plant at Banswara (Rajasthan) is 119188 ring spindles, 14400 spindles for worsted yarn, 576 air jet spindles, 194 shuttles less looms, 12 jacquard looms, fabric processing capacity of 4 million meters/month besides 12.5 K pcs/month of jacquard made-ups.  The company also has monthly readymade garment production capacity for 225 K trousers and 10 K jackets at Daman and Surat.  The company also has an 15/18 MW coal based thermal power plant. BSL exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Philippines, Turkey, and GCC countries.

For more details on this release, please contact:

J K Jain                                                       Bharti Shah                                                  Banswara Syntex Limited                               Abhidi Communications                                  +00 91 2962 257676 upto 81                         + 00 91 22 2204 4737

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