“An outlay of Rs 30 crore has been set aside and we will roll out 30 retail outlets in the first year of our operations,” said Yash Birla.
The company announced a Rs 315 crore, 50:50 joint venture with PB Bhardwaj group for an integrated textile project to be set up at Khamgaon, Maharashtra. The project will be funded with Rs 155 crore debt and Rs 160 crore equity, while other investments will be met by internal accruals.
With a capital outlay of Rs 300 crore, nearly 2,000 persons will be employed for the project. The plans are to increase spindle capacity up to 60,000, and a dyeing and processing unit will be set up to manufacture finished cloth in a phased manner. January 2008 will see completion of the project and the company will start selling processed fabric, followed by rollout of its branded retail products.
The London-based PB Bhardwaj group will be doing textile business for the first time in India. The company manufactures and distributes yarn, fabric and garments, and has interest in steel throughout the world.