Mudra to set up project at Silvassa
The project with a proposed capacity of 3 million metres per month would not only help achieve the targeted capacity of 5 million metres per month from the current level of 2 million metres per month but also drive the company into much potential area of innerwears, ladieswears, lingeries etc production where India is currently reliant on imports.
India consumes about 12000 tonnes of Spandex yarn with virtually no production inhouse and therefore, imports from China, South Korea and Japan.
The company is scouting for a finance partner to part fund this project. Earlier, the company was planning to raise about Rs 200 crore through foreign currency convertible bond (FCCB).
But, looking at the recent slump in the stock market, it is now looking for a partner to invest Rs 200 crore. A sum of Rs 64 crore is proposed to be funded through loan while promoters would finance Rs 36 crore.
The technology and plant and machinery for this project has already been finalised with Mitsubishi Rayon Engineering (MRE), Japan.
"We are in talks with a number of investors but nothing concrete has come out yet. But, talks with MRE is almost finalised," said Murarilal Agarwal, CMD. Mudra is planning to start this project by the end of 2009 to tap the potential in the import substitute markets, Agarwal added.
The ongoing expansion envisaging an investment of Rs 200 crore at its Tarapur plant would ramp up the total capacity to 130,000 metres per day of cotton and linen garments.
The company proposes to add capacity to make two lakh garment pieces a month by June. In January, the company added capacity for one lakh pieces. Once the latest expansion plan is executed, Mudra