Birla Cotsyn (India) Limited, a company of the Yash Birla Group, engaged in textile manufacturing is now setting up an integrated textile unit estimated at a cost of Rs. 320 crore at its facilities in Khamgaon, Ghatanji & Malkapur . This project has been appraised by SBI Capital Markets Ltd.

Birla Cotsyn plans to enter the capital market with an IPO of Rs 144.18 crores to fund the above project. The company has fixed at price band of Rs 15 to Rs 18 per equity share of face value of Rs 10/- each. The price band is 1.5 times of the face value and the cap price is 1.8 times of the face value. The company intends to raise Rs.144.18 crores at the cap price of the price band.The 100% Book Build Issue opens on Monday June 30, 2008 and closes on Friday 04 July, 2008

The proceeds from the issue will be utilized to set up a integrated textile unit and a garment manufacturing plant at their facilities located at Khamgaon, Ghatanji & Makkapur in Maharashtra. The invested will also fund the company’s foray into retail outlets which it plans to set up pan India.

In order to ensure success in their expansion plans, the initial promoter of Birla Cotsyn (India) Limited Yash Birla group had entered in a 50:50 Joint venture with the P.B.Bhardwaj Group, This JV will enable both the partners to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products, which will enable their presence felt, in India as well as in international markets.

The textile project at Malkapur has been granted the “MEGA PROJECT” status by the State Government of Maharashtra and will get fiscal benefits over the next seven years.

The company is in the process of setting up a 36,000 cotton spindle yarn manufacturing unit at Malkapur. Commercial production in Phase I has commenced.

In Phase II, the company has set up an Open End rotor based Cotton yarn manufacturing facility having capacity of 1,728 rotors, which has since become operational. In this Phase the Company is also setting up a weaving unit of Cotton Grey Fabric with 114 Looms.

Moving forward with a fully integrated manufacturing process, Birla Cotsyn plans to manufacture finished fabric by setting up a Dyeing and Processing facility with an installed capacity of 50,000 meters per day in Phase III.

The Company is setting up an Readymade Garment Manufacturing unit and entering the retail garment sector by establishing 20 retail outlets across the country to support this foray the Company is setting up a garment manufacturing facility.

The Indian textiles industry has an overwhelming presence in the economic life of the country. It is in fact, the one of the main foreign exchange earning sector in the country. The diversified Yash Birla Group identified enormous benefits from this industry. Birla Cotsyn plans to establish retail outlets all over the country for marketing their products. In the current dynamic industry scenario, Birla Cotsyn has drawn up a blueprint to strategically position themselves as one of the leading players in the textile industry”.

By expanding into other parts of the textile value chain, Birla Cotsyn is leading the way to a world of productive excellence. In the long run, the company hopes to strengthen and sustain India’s economy. Driven by strong commitment, passion and dedication, Birla Cotsyn is looking forward to pioneer and lead the way for the fashion world to sit up and take notice.

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