New Delhi, Feb 25: Spentex Industries, the country's
biggest yarn maker, has chalked out ambitious plans to nearly
double its manufacturing capacity in two years by expanding
existing units and acquiring companies in India and abroad.
"We are aiming to almost double our capacity to 10 lakh
spindles in the next two years from 5.70 lakh spindles at
present. We would add 2.5 lakh spindles this year itself,"
Spentex Managing Director Mukund Choudhary told.
The company had hit the headlines for big time takeovers
including Cimmco Spinners of S K Birla Group and Indo Rama
Textiles. Last year, it also acquired Uzbekistan-based
Tashkent-To'yetpa Tekstil for Rs 364 crore, which catapulted
it ahead of the Vardhman Group in terms of manufacturing capacity.
Choudhary said Spentex would prefer aggressive inorganic
growth. "We will not go in for any greenfield projects but
would rather expand our existing ones and buy out facilities
wherever there are opportunities," he said.
Spentex, which has a turnover of about Rs 1,200 crore,
would look for medium to large-sized companies for
acquisitions, he said. The company could clinch a couple of
deals in the next few months, he said, but did not give
details about the potential targets.
Spentex, which grew out of a family owned trading firm
CLC Group, has been on an acquisition spree in the last three
years, buying out at least six companies so far.
It has expanded its capacity by buying out RPG's group
facility in Baramati, assets in Ahmedabad from Bank of India,
Indo Rama's units at Pitampura and Butibori and Amit Spinning
in Kolapur last year.
Bureau Report