Suryalakshmi setting up 25 Mw thermal power plant

City-based textiles major Suryalakshmi Cotton Mills Limited is setting up a 25-Mw thermal power plant at an estimated cost of Rs 135 crore to further improve the profitability of its denim division.

“Necessary approvals have been obtained and fuel linkage has also been tied up. The financing arrangements are being worked out. The power plant is expected to be commissioned in 2011-12. After meeting the captive requirements, the company plans to sell the surplus power,” the company said in a press release on Sunday.

The company also proposes to add another 10,000 spindles to its yarn division at Amanagallu in Mahabubnagar district, taking the total spindleage to 60,000, besides enhancing the spinning capacity at its 40-million metre denim plant at Ramtek near Nagpur to improve profitability and reduce dependence on outsourcing, it added.

 

Suryalakshmi reported a net profit of Rs 4.35 crore during FY10, against a loss of R 15.7 crore in the previous year, on the back of building a direct business with leading international brands like VF Corp, Levi’s, Walmart and Target.

Turnover during the year was Rs 417.83 crore, an increase of 16 per cent over the previous year, which will touch Rs 500 crore in the current financial year, the company said.