The Hindu Business Line : Nahar Industries plans foray into real estate

Nahar Industries Enterprises Ltd (NIEL), a fully integrated textile company, is planning a foray into real estate to utilise surplus land at three locations in Ludhiana, Punjab.

"We have property that we do not require for our industrial and manufacturing activities and are looking to develop them into commercial or residential complexes," said Mr Kamal Oswal, Vice-Chairman and Managing Director, Nahar Industrial Enterprises Ltd.

The company is also planning retail expansion. Its brand, Cotton County, for readymade menswear, was started one and a half years ago. Currently, there are 110 exclusive franchise retail outlets in Tier I and Tier II cities across India. By March 2007, there will be more than 250 outlets.For the year ended March 2006, the company recorded a turnover of Rs 750 crore, of which retail accounted for Rs 36 crore. For the year ended March 2007, the company expects retail turnover to cross Rs 100 crore.

It is currently busy expanding its facilities and has invested Rs 814 crore. Under this programme, NIEL proposes to increase its yarn and processed fabrics capacities at its units in Lalru and Bhiwadi (Rajasthan).

Funds are being raised through a combination of term loans, FCCBs and internal accruals. The expansion will be completed by March 2008.

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