Calcutta, Feb. 9: Indo Rama Textiles Limited (IRTL), which was formed following a restructuring of the Indo Rama group, is open to the idea of acquiring textile units in order to grow. The group is also chalking out plans to enter new areas of business.
Talking to The Telegraph, managing director of Indo Rama Synthetics Limited (IRSL), O. P. Lohia said: “We are open to the idea of new acquisitions for our spurn yarn business which is handled by IRTL. However, we will take a decision following the budget, which will give us a clearer picture. Also, we may enter new areas of business.”
The company is eyeing textile companies that have been put up for sale by the banks following the new NPA securitisation scheme. “We will carry out a proper due diligence of the assets before taking over,” Lohia added.
Indo Rama has undertaken a restructuring exercise of the group. As part of the scheme, IRSL would retain the draw texturised yarn (DTY) business while spurn yarn will go to IRTL. Lohia said the exercise will take two more months to complete. “It is in the final phase of implementation,” he added.
The company has undertaken a two-phased expansion programme. In the first phase, it will raise the production of partially oriented yarn and fully-drawn yarn by 20,000 tonne per annum. The present capacity of its plant at Butibori in Nagpur is one lakh tonne per annum.
In the second phase, the company plans to double the staple fibre production from 3 lakh tonne to 5 lakh tonne per annum at an investment of Rs 500 crore.