Will expand denim capacity by Mar 2012: Shri Lakshmi Cotsyn

MP Agarwal, the chairman and managing director of textile company Shri Lakshmi Cotsyn says, his company is looking to expand its denim capacity by March 2012.

Below is an edited transcript. Watch the accompanying video for more. Q: On your denim capacity expansion, when will the plant be commissioned? How much will your capacity increase by? What revenue will accrue on account of this?
A: Our denim capacity will increase from 20 million to 40 million meters, adding to the total revenue of Rs 300 crore and the bed linen capacity will increase from 12 million to 30 million meter, adding to the total turnover per annum of around Rs 350 crore.
We are putting in a technical textile greenfield project of 57 million meters. Our total turnover is expected to be around Rs 2,200 crore. We closed June 2011 at Rs 1,800 crore. Q: You had some fundraising plans this fiscal. Can you take us through anything you have finalised on that front?
A: We have fundraising plan of Rs 175 crore. For this we are in the process to do private equity placement. The other source of issuing fresh equity is through a bank loan which we have completely tied up. We are not in a hurry to raise equity because the bank has already financed the debt against this equity. Q: Would you require additional debt? What does the debt on the books currently stand at for all these expansion plans?
A: No additional debt is required. This additional debt has already been tied up last year. After this complete project implementation, our total debt will be to the tune of around Rs 1,400 crore and which will raise our revenue to around Rs 2,200 crore in total.