Rajapalayam Mills Ltd board approves capacity addition

The Board of Directors of Rajapalayam Mills Ltd at their meeting held on 30-10-2021 had given their approval for capacity addition of 166 Nos. of Looms and establishment of Fabric finishing process with a capacity of 50,000 meters per day in our Yarn dyeing & Weaving unit.

The Company is currently offering premium yarn and Loom state greige fabrics to leading fabric manufacturers in India and abroad. To meet out the increase in demand of fabric and to further increase the value of our supply, it is proposed expand the loom capacity and to establish fabric finishing process in our Weaving Unit. By establishing fabric finishing, the Company can supply ready to stich finished fabrics to Leading Brands. It is expected to increase the Sales turnover by 25% and corresponding increase in profits.

The Existing capacity of 122 Looms will be increased to 154 Looms by March / April 2022 and a necessary purchase order has been placed for additional 32 Looms at an estimated project cost of Rs.330 Crores.

The funding will be done through a mix of Bank borrowings / Internal accruals / Equity Instruments / Debt securities / any other mode as may be decided by the Board.

Shares of RAJAPALAYAM MILLS LTD. was last trading in BSE at Rs. 1093.90 as compared to the previous close of Rs. 1077.10. The total number of shares traded during the day was 5377 in over 245 trades.

The stock hit an intraday high of Rs. 1100.70 and intraday low of 1051.00. The net turnover during the day was Rs. 5842995.00.

Source : Equity Bulls

Keywords

RAJAPALAYAMMILLSLTD INE296E01026 Textiles CapacityAddition