The Hindu Business Line : Jindal Worldwide plans diversification

The Ahmedabad-based textile major Jindal Worldwide Ltd, which is undertaking a major expansion of its existing business entailing an investment of Rs 225 crore, is planning a foray into infrastructure development.

The company proposes to develop industrial estates in and around the city.

The board is meeting soon to decide on the diversification proposals, besides considering options for raising funds totalling Rs 61 crore for financing a slew of expansion schemes. The options could include raising funds through FCCB, ADR/GDR routes and through issue of equity or preference shares.

The company is raising Rs 164.43 crore as term loan under the Textile Upgradation Fund Scheme, it said in a release here.

Weaving capacity

A major element of the expansion project is augmenting weaving capacity at a cost of Rs 57.04 crore. The next big expansion is on the home textile front envisaging a capital expenditure of Rs 40.67 crore followed by a garmenting project on which Rs 24.31 crore is being invested. A terry project is also planned at a cost of Rs 30.42 crore. The company is also investing Rs 35.81 crore to expand its open-end and ring frame spinning capacities. A Rs 9-crore yarn dyeing project is being planned which will increase the dyeing capacity to 3.3 million metres a year.

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