K K Birla Group company Sutlej Textiles and Industries have embarked on a Rs393 crores expansion and modernization and is buying machinery from china as Indian suppliers are overbooked.
The company is now planning to enter garment and home furnishing business.
Projects will be financed by internal accruals and financial assistance from banks under the technology up gradation fund scheme.
Sutlej has reported a 93 percent increase in net profit in nine months ending March 31, 2006 to Rs20.67 crores while its turnover has increased by 16 percent to Rs490.34 crores.
The board of directors of Sutlej have also recommended dividend of Rs4 per share.
The net profit growth has outpaced increase in turnover because of better margins, better product mix and tax changes that have made possible the entire credit on Cenvat possible.
Company will start selling garments from October this year while in home furnishings they have started test marketing.
Upon demerger of the textiles division of Sutlej Industries Ltd. last year Sutlej Textiles and Industries Ltd. was created.
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