Mumbai, July 26: Textiles major Raymond Ltd will set up a new facility in Bangalore to make formal shirts with a capacity of 3,000 shirts per day at a cost of Rs 13.57 crore.

At its meeting held today, the board has approved the proposal. Raymond will float a new company that will make the shirts and it will commence operations from March 2005.

The board has also approved a proposal to set-up an additional trouser-line at the existing facility in Bangalore, which is run by its wholly-owned subsidiary, Silver Spark Apparel Ltd. The new facility will have a capacity to tailor 1,000 trousers per day and will commence operations from November 2004.

Raymond had earlier announced a Rs 200-crore expansion programme, which included setting up of two new manufacturing units for apparel and denim-wear apart from expanding its existing denim facility.

It had also announced setting up of a new suit and formal-trouser making facility in Bangalore with an annual capacity of 5 lakh suits and 10 lakh trousers in two phases at a total cost of Rs 40 crore.

Meanwhile, the company posted a lower net profit of Rs 3.14 crore for the first quarter ended June 30, 2004 against Rs 20.92 crore in the corresponding previous quarter.

Gross sales were higher at Rs 199.65 crore (Rs.185.50 crore) despite continued recession in the market.

Raymond said the dip in profit was due to the depreciating rupee.