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Monday, April 17, 2006

NIEL plans to enter capital market by September


Textile Company, Nahar Group plans to invest Rs 1,050 crore (Rs 10.50 billion) at Lalru (Punjab) by 2008 to augment its spinning and weaving capacity, reports The Hindu Business Line.

The investment is intended to double the fabric production capacity of 1 lakh metres per day by adding 1 lakh spindles and 250 looms to the existing 1.5 lakh spindles and 426 looms.

"We would also set up a cogen power plant of 12 MW in the current financial year and another one of 21 MW in the next year," said Kamal Oswal, vice-chairman and managing director, Nahar Industrial Enterprises, NIEL.

To finance the investment, the NIEL has issued zero-coupon FCCBs aggregating USD 45 million. The remaining project cost would be met through term loans under the TUFS, (Technology Upgradation Fund Scheme) and internal accruals.

NIEL also plans to launch an initial public offering by September to generate Rs 200 crore (Rs 2 billion), said Oswal.

The facility at Lalru is spread over 550 acres. The group has invested Rs 1,500 crore (Rs 15 billion) in the facility.

Meanwhile, the group also has plans on the retail front for the two brands it owns - Monte Carlo and Cotton County. While the number of Cotton County exclusive stores would go up from the present 70 to 250 by 2008, the Monte Carlo stores would go up from the existing three to 100 in the same period. The retail expansion would be carried out through a mix of own and the franchisee stores.

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