S Kumars Synfabs To Up Share Capital To Rs 125 Cr

The authorised share capital of the S S Kasliwal-promoted S Kumars Synfabs is being hiked to Rs 125 crore from the existing Rs 75 crore.

Shareholders approved the move at the seventh annual general meeting of the company on Tuesday.

The capital is being hiked through the issue of 50 lakh preference shares of Rs 100 each.

The move is aimed at financing the addition to weaving capacity, retirement of costlier debt, purchase of balancing equipment and for meeting the company's long-term working capital requirements.

The spinning and weaving unit of Standard Industries, which was acquired by S Kumars, has been turned around within two months of its acquisition, S S Kasliwal, the company chairman said at the AGM.

"The acquisition has helped stabilise yarn supply to our existing units and has enabled us to gain a foothold in the European markets for grey cloth export," he added.

Textiles still constitutes 7 per cent of the GDP, 17 per cent of the value added in the manufacturing sector, and 33 per cent of total foreign exchange earnings.

Kasliwal was optimistic about the future of textiles in India. "We will continue our policies of adapting to modern technology, realistic wages and producing better quality fabric. We will continue to invest in reducing production costs, manufacturing a wide range of products and strengthening our brand equity. We see ourselves playing a key role in the growth of the Indian textiles," said Kasliwal.

S Kumars Synfabs performance in 1996-97 was satisfying. The good performance

was due to favourable polyester prices and successful completion of the weaving expansion. Besides, the company also managed to maintain its competitive edge in uniforms and work-wear fabrics, Kasliwal explained.

The worsted mill project was nearing completion and will be operational in the second half of the year.