Suryajyoti Spinning Mills Limited, a manufacturer of yarns, has announced that it will set up India's first specialty bottom weight fabric weaving, dyeing and finishing plant in technical collaboration with an Italian company. | |
| According to a company statement, the Italian company has significant experience in this industry and has been servicing the requirements of major global fashion labels like Dolce & Gabbana, Giorgio Armani, Versace and others. |
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| The bottom weight facbric initiative will be structured as a strategic business unit and will focus on delivering Italian quality at Indian prices. Suryajyoti will invest about Rs 105 crore in this project which will be located near Hyderabad. |
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| At optimum capacity it will manufacture nine million metres and process 20 million metres of bottom weight fabrics. Suryajyoti will focus on production of fabric with specialty finishing. |
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| In the third full year of production, specialty finished bottom weight fabric is expected to comprise more than half the output and two-thirds of the revenue from this venture. |
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| The project will largely be financed by long-term debt (about two-thirds of total investment) with the remaining requirement being met by internal accruals and equity capital. |
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| Production is expected to start in the second half of FY08 and will reach optimal production levels by FY10. By then, Suryajyoti's bottom weight fabric business will contribute revenues of more than Rs 200 crore with EBITDA margin of more than 25 per cent. Total revenues of the company are expected to reach Rs 425 crore by FY10. |
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