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| PRESS RELEASES |
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| Hanil Era Textiles to set up processing and dyeing capacity |
| Mumbai, April 4, 2005: The Rs 120-crore Hanil Era Textiles Ltd. has enlarged the scope of the modernisation-cum-expansion programme that it had announced in January 2005. “We have increased the weaving capacity to 108 looms from the earlier planned 72 looms. We have also added a processing and dyeing capacity to the original project, giving us tremendous integration. By adding this facility as also by adding more looms to what was originally planned, we have increased the project cost by Rs 30 crore to Rs 80 crore,” said R K Agarwal, Chairman, Hanil Era Textiles. |
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| The project will now happen in three phases – phase I for grey fabrics and home furnishings (to be completed in May 2005), phase II for processing and dyeing (to be completed in June 2005) and phase III for terry towels (to be completed in September 2005). “The project will be completed at a lower cost as compared to other similar projects, which would cost at least Rs 150 crore. This is possible as we are using our existing infrastructure for this expansion. This will help us become the cheapest producer of textiles in the country,” says Agarwal. Hanil Era is also modernising its existing spindelage capacity to achieve better efficiency in its operations and reduce costs further. “The modernisation exercise is in full swing and will be completed by May 2005,” says Agarwal. |
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The modernisation-cum-expansion programme is for Rs 80 crore. Of this the modernisation will cost Rs 15 crore while the expansion will take up Rs 65 crore. This will be funded by way of term loans (Rs 65 crore) and internal accruals (Rs 15 crore). According to Agarwal, “The zero-debt status of Hanil Era helps in getting the requisite funding. The infrastructure for the project (land, buildings, power, water, etc.) is already available at the existing site, and thus brings down the cost of the project substantially.” The manpower requirements at the site will also be a very small as the modernisation will mean that the excess manpower can be used for the looms. In fact, the company has recently signed a 3-year wage agreement with the workers, which entails better efficiency on a 5-6% wage bill hike. |
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| About Hanil Era Textiles Ltd |
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| Established in 1992, Hanil Era Textiles Ltd. (BSE Code: 500177) is a 100% EOU that was floated as a JV between New Era Fabrics Ltd. of Matunga (Mumbai) and Hanil Synthetics Ltd. of South Korea. It went public with a NCD issue in 1993. Hanil Era has a yarn manufacturing capacity at Patalganga in Maharashtra, where it makes worsted, cotton and blended yarn with a total spindelage of 80,000. It has its own power generation unit with a capacity of 16.5 MW and it supplies excess power to the MSEB grid. It has recently set up an ethanol dehydration plant with a capacity of 200 KL/day to supply pure ethanol to chemical units as well as oil companies. |
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