Bannari Amman goes for expansion, public issue soon
14 Oct '05
2 min read
Coimbatore-based Bannari Amman Group member company Bannari Amman Spinning Mills has decided to expand its spinning and weaving capacities at the cost of Rs 290 crores.
It is going public with an issue of 70 lakh equity shares each having Rs 10 as face value.
Speaking to media, Group Chairman and Manging Director S V Bala Subramaniam said, "The company has been sanctioned a term loan of Rs 175 crore for the proposed expansion while the rest would be contributed through issue proceeds and internal accruals."
About 75,600 spindles will be added to the existing 29,232 spindles at its Dindigul spinning division in Tamil Nadu. As a result, cotton yarn production will go up 45 tons from 16 tons per day at present, informed Subramaniam.
The company's weaving facility at Coimbatore currently having 28 looms will add another 60 looms that will step up woven fabric output to 10,000 metres per day.
Subramanium said a proposed processing unit having installed capacity of 30,000 metres per day will be set up for garment and home textile division to use its production along with 15,000 metres of woven fabric to make 0.8 million pieces per annum.
Company plans to add additional capacity of 10.4 MW to its existing four wind mills of 5 MW at Tamil Nadu to raise the total capacity to 15.4 MW, he stated.
Group's flagship Bannari Amman Sugars Ltd has two sugarcane plants at Tamil Nadu and Karnataka.
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