Pratibha Syntex plans Rs 349 cr expansion

Pithampur-based Pratibha Syntex has lined up Rs 349 crore for expansion that includes setting up a terry towel unit in the Pithampur SEZ with an initial capacity of 12,000 metric tonne per annum.This would be commissioned by October next year.

A bulk of this investment will go towards the terry towel project with an outlay of Rs 217 crore.

The company plans to raise capital for the expansion by borrowing Rs 233 crore through term loans from eight different financial institutions. Remaining Rs 116 crore would be raised through internal accruals and equity.

The company has not ruled out the possibility of floating an IPO.

"We will be filing with Securities and Exchange Board of India (SEBI ) shortly but the final decision depends on the health of the capital market. We are exploring private equity as well as a public offer," said Shreyaskar Chaudhary,managing director, Pratibha Syntex.

Pratibha Syntex, which is active in knitting, dyeing and garmenting, has a widespread client base and services both in the domestic and international markets. It mainly exports to North America, Europe and a few African nations.

The company will also invest in a 6-MW captive gas plant (Rs 8 crore) at its Pithampur manufacturing unit, an open ended spinning project (Rs 54 crore) and expansion of its knitting, dyeing and garmenting operations (Rs 60 crore).