Birla Cotsyn, part of the Yash Birla Group, is coming up with an intial public offer (IPO) of Rs 144 crore next week with a price band of Rs 15-18 a share. The company, engaged in textile manufacturing, is undergoing a project expansion of Rs 320 crore for setting up of weaving, processing, garmenting units. It also plans to begin retail operations with 20 stores by financial year 2010.

The projects are coming up in cotton growing areas Malkapur and Khamgaon in Maharashtra. Post expansion, which is expected to be over by 2009-10, the company's spinning capacities (cotton) will be 36,000 spindles, while processing capacity will be 50,000 metres a month. The garmenting unit will have a capacity of 1.2 million pieces per annum.

"Our spinning unit has been set up where as for weaving the unit is being prepared and for processing we still have to purchase the machinery. Once this is over, we will get into retail with our own 20 stores in the Tier I and Tier II cities of the country," said Yash Birla, chairman of the group.

He added that the company, which is entering into a complete value chain of textiles from cotton to fashion fabric and garments, will also manufacture garments for other retailers in domestic as well as overseas markets.

The company has a 50:50 joint venture with P B Bhardwaj Group, which has an expertise in textile business and has international marketing network. "Through this joint venture, we will be supplying over 50 per cent of our finished products to the international markets," said Birla.

The rest of the funding of the projects is being done through term loans under Textiles Upgradation Fund Scheme (TUFS).