Coimbatore-based Bannari Amman Group-controlled Bannari Amman Spinning Mills has entered into a Memorandum of Understanding (MoU) with the Tamil Nadu government for setting up a textile project near Dindigul, Tamil Nadu.
While the company officials were not available for comment, the company in an announcement to the National Stock Exchange said its "wholly-owned subsidiary Abirami Amman Mills Pvt Ltd has inked an understanding with the Tamil Nadu government ."
The company, however, did not disclose other details, including capacity and investment.
A senior official in the know said the new project would have a production capacity of 15,000 spindles.To set up a such large scale project, around Rs 250 crore would be required. The vertically integrated Bannari Amman Spinning Mills currently has a capacity of around 160,000 spindles at Dindigul. It caters to Tirupur, Kolkata and Kanpur markets. The mill exports 24 per cent of the production to Israel, Mauritius, Egypt, Taiwan and South Korea.
During the quarter ended December 31, 2013, the company reported a net profit of Rs 6.14 crore when compared with Rs 6.05 crore a year ago. Total income stood at Rs 174.96 crore as against Rs 146.25 crore last year.