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Friday, March 24, 2006

HTTL to set up unit in Uttaranchal; IPO soon

Home furnishing products company Hanung Toys and Textiles, HTTL, is setting up a manufacturing unit in Uttaranchal and will go public to part-fund the Rs 175 crore (Rs 1.75 billion) project, which would boost its overseas exports, report agencies.

“The upcoming unit at Uttaranchal will comprise a weaving plant, dyeing and printing facilities and produce home furnishing products such as bedsheets, quilts, curtains and cushions. The products are sold under the brand 'splash',” Chairman and Managing Director Ashok Kumar Bansal said.

The company, which has a technical collaboration with South Korean company Hanung Industrial Co., has managed Rs 90 crore (Rs 900 million) from banks and financial institutions and for the balance amount it would issue a public offer by mid-April after required approval from the Sebi, he said.

“We will issue a public offer by mid-April this year after having approvals from the Sebi. The issue consists of 95 lakh equity shares of Rs 10 each,” he said.

The issue would constitute 37.72% of the post issued paid up capital of the company.

The unit, which is scheduled for commissioning in December this year, would enhance company's capacity six folds and boost overseas export of home furnishing products.

“Current production of furnishing products is about 20,000 meters a day. After the unit in Uttaranchal becomes operational it would go up to 1,20,000 meters per day,” he said.

The overseas market that the company is eyeing is mainly United States and Europe, which account for 80% of company's export revenue.

The products have little presence in domestic markets and had generated Rs 16 crore (Rs 160 million) last year, he said.


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