Swarnandhra Jute to invest Rs 100 cr

Swarnandhra Jute Mills Private Limited (SJMPL) will invest about Rs 100 crore over the next two years to raise the production capacity of its plant by 90 tonne per day.

SJMPL has set up a Rs 10-crore high quality jute fine yarns production unit with an installed capacity of 3,400 tonnes per annum at Pydibheemavaram in Srikakulam district, which commenced production last November. The company expects a turnover of Rs 8 crore during the next fiscal and about Rs 1 crore by the end of March 2007.

"We want to upgrade this facility as a composite jute mill, which will produce right from jute yarn to sacking cloth and food grade jute bags," B V Rama Rao, managing director, SJMPL, told Business Standard.

The expansion work would be completed in two years following which the company's production capacity would go up to 100 tonne per day.

"Post expansion, we are expecting our turnover to touch Rs 120 crore per annum," he added.

Of the Rs 100 crore, the promoters would pump in 25 per cent and the remaining 75 per cent would be generated through debts from financial institutions, Rao said.

SJMPL plans to export about 40 per cent of its products to Brazil, Sri Lanka, Germany and United States. The company would procure raw jute mainly from West Bengal.