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Hanil Era Textiles to start weaving capacity
Modernisation-cum-expansion to cost Rs 50 crore
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| Mumbai, January 12, 2005: The Rs 120-crore Hanil Era Textiles Ltd. is embarking upon a modernisation-cum-expansion programme. While it has been a yarn manufacturer till now, the company is now going in for a weaving capacity at its existing facilities at Patalganga in Maharashtra by setting up 72 looms. The expansion will happen in two phases – phase I for grey fabrics, processing and home furnishings and phase II for terry towels. Hanil Era is also modernizing its existing spindelage capacity to achieve better efficiency in its operations and reduce costs further.
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| Commenting upon the development, R K Agarwal, Chairman, said, “We have been a yarn manufacturer till now. But with the export markets looking brighter, we have decided to add more value to our products, and hence this project for forward integration. We are entering into the fields of furnishing fabrics, bed linen and terry towels. We feel there is tremendous potential for these products, and we can provide them to the world at a cheaper price. This is our USP.” |
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The modernisation-cum-expansion programme would cost Hanil Era Textiles Rs 50 crore. Of this the modernisation will cost Rs 15 crore while the expansion will take up Rs 35 crore. This will be funded by way of term loans (Rs 35 crore) and internal accruals (Rs 15 crore). 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. |
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| The order for machinery has already been placed, and the machines will start arriving at the site from end January. Machinery installation will be completed in April 2005, while trial runs will start in May 2005. Commercial production for phase I is expected to commence in May-June 2005 and will contribute to the turnover and profits for 10 months in the year 2005-06. Commercial production for phase II is expected to commence in end September 2005 and will contribute to the turnover and profits for 6 months in the year 2005-06. |
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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. The company 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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