In order to finance Hanung's expansion exercise that includes a new plant in Uttaranchal, the Rs200 crores Hanung Toys and Textiles Ltd (HTTL) will offer 9.5 million shares in an initial public offering to raise Rs100 crores.
The new unit, which will be used for weaving, dyeing, printing and made-ups, will have a weaving capacity of 21,000 metre a day and a processing capacity of 105,000 metre a day.
Currently, HTTL does not have any weaving capacity, while it has a processing capacity of 20,000 metres a day.
At present, domestic sales for HTTL are just around 10 percent but it expects its turnover will increase from Rs200 crores to over Rs300 crores in the current financial year.
Company intends to raise its profile in the domestic market by taking up its sales component to 25 percent, while raising its toy production from the current 1.01 crores units to 1.4 crores units.
HTTL has tied up with Reliance and other leading Indian retailers.
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