Announcement
»
Commencement of Thermal
Power Plant
The
company has, successful commence its 18 MW
thermal-based power plant at Banswara. The power
plant is set up for 100% captive power consumption.
The shift from
furnace oil to thermal-based power plant is expected
to cash in additional Rs. 20 crore on an annual
basis. For the power plant, The plans to consume 100
% imported coal . This would help the company to
cash in Rs.1.70 per unit from the existing state
electricity board cost of Rs. 4.55 per unit.
Moreover, this will also avail a 10-year tax holiday
for the company, apart from better quality and
uninterrupted flow of power for captive consumption.
Increased capacities along with the savings from the
power plant will see the volumes grow with leveraged
operating efficiencies for the company.”
Expansion
Plan Status
The company’s on-going expansion plan of Rs 125
crore is progressing as per schedule. Additional
11000 spindles became operational by August 2007.
The revenue from these operations will be reflected
in Q 3 FY08 onwards.
With the ongoing expansion plan, the income from
operation from yarn is expected to be at Rs. 350
crore, fabric at Rs. 200 crore and of garments at Rs.
40 crore in FY08. Going forward, the revenue from
fabric and garments is expected to improve
substantially with the setting up of trousers unit
of 2 lakh pieces and jackets unit of 30,000 pieces
per month capacity in SEZ area at Surat from Dec 07.
The contribution from fabric segment would go up due
to specialty product like Poly Viscose Lycra Fabric,
Poly Wool , Teflon coated and Linen Fabric etc.
The company’s joint venture unit at Banswara is also
operating at its optimum capacity.
The company is
a preferred garment outsourcing partner for the
major global retailers. Higher contributions from
garments (particularly, career clothing for women’s
& sports casual wear) and fabrics coupled with
decline in power costs would enable the company to
achieve significant improvement in net profit
margins.
