Textile major Trident Group today said it will invest Rs 3,600 crore for setting up a new manufacturing unit and expanding existing yarn facilities at Budni in Madhya Pradesh.
On the back of the planned expansion, the group is aiming to double its annual turnover to around Rs 9,000 crore in the next three years.
“The expansion project of the yarn spinning facilities is being implemented with an investment of Rs 1,200 crore and the balance (Rs 2,400 crore) is for an integrated textile facility,” Trident Group Chairman Rajinder Gupta told PTI.
“The expansion is expected to be completed by third quarter of 2013 and it (the new unit) will be one of the largest integrated home textile manufacturing facilities in the world,” Gupta claimed.
The funds for the proposed expansion will be a mix of debt and internal accruals.
“The company will get funding from institutions (debt) worth Rs 2,000 crore. Rs 1,400 crore will be from internal accruals and the remaining from a strategic partner,” he said without giving further details.
He said the facility will make terry towels, bed sheets and yarns.
The group exports terry towels and bath robes worth Rs 1,200 crore to global retailers like Walmart and JC Penny in 76 countries, mainly in the US and Europe.
“We are targeting Australia, Europe, Japan and New Zealand. We will consolidate our existing markets and build bigger share,” Gupta said.
In the domestic market, the group is aiming to increase its market share of around 5% at present, he said.
The group has also tied up with Future Brands for promotion of its towel brand within India.
Trident’s current production capacity is 14.5 million pieces of towels, 90,000 pieces of bathrobes and 7,500 tonne of cotton and blended yarns per month.
“Post expansion, the capacity will get doubled,” Gupta said.
Commenting on the government’s plan to open India’s multi-brand retail segment to FDI he said: “This will happen one day. These models are being done across the globe and they doing wonderfully well. We all know the good of that and it will happen.”