Tuesday, July 19, 2005

Himatsingka records Rs. 11.27 cr Profit

SILK fabric manufacturer and exporter Himatsingka Seide Ltd plans to invest Rs 400 crore in setting up a bed linen fabrics unit at the Hassan Special Economic Zone in Karnataka. The Indian brand repeoted an increase of 11 per-cent in its net-profit at Rs. 11.27 crore in q1. Sales revenues for the quarter increased 11 per cent to Rs 34.17 crore from Rs 30.79 crore in the corresponding previous quarter The brand expects to finance this new unit through internal accruals and a term loan. Himatsingka intends to take a term loan under the government's Technology Upgradation Fund scheme. The Karnataka Government has allotted 100 acres at Hassan SEZ for Himatsingka's new unit that will have a capacity of 20 million meters per annum. Construction activity at the new project is expected to start by September and the project is expected to be completed within 12 months. On reaching full capacity, the turnover of this new unit will be around Rs 475 crore. With this proposed investment, Himatsingka is targeting a turnover of Rs 700 crore by 2007-08.