Suryajyoti ties up with Italian company

Hyderabad-based Suryajyoti Spinning Mills Limited (SSML), a yarn manufacturer, is setting up a speciality bottom weight fabric facility at a cost of Rs 104.5 crore in technical collaboration with Pangea SRL, an Italian company that has been servicing the requirements of major global fashion labels.

The project, being set up at Kurcharkal village in Mahabubnagar district of Andhra Pradesh, would be structured as a special purpose vehicle. The fabric manufactured at the facility would be sold in India and overseas under the brand name 'Pangea Fabrics'.

"We are also seriously working about getting into the garments business by 2010," SSML executive director, AK Agarwal, said adding that the whole idea behind the initiative was to take the company beyond the activity of spinning.

Agarwal told Business Standard that the project was being financed largely through a debt of Rs 75 crore, available to the company at attractive terms under the Technology Upgradation Fund (TUF).

The remaining amount would be funded through proceeds from the company's recent $10 million (over Rs 40 crore) foreign currency convertible bonds issue.