TT to invest Rs 100 cr in capex, expand biz in Europe

Our Corporate Bureau
10 May 2005

New Delhi: The Rs162-crore integrated knitwears and textiles firm, TT Ltd, will invest Rs100 crore in the next two years to increase its yarn capacity and expand the company's presence in Europe. Already the company has upgraded its textiles mills, which produce over six lakh miles of high quality of yarn per day, with imported modern machines and technologies from Switzerland, Japan and Germany.

''Besides investing Rs100 crore to enhance our production capacity and match the growing demand of quality yarn, we are aggressively planning major forays into the western markets, including expansion in Europe said,'' Sanjay Jain, director, TT Ltd said.

Jain said the funding will be made through a mix of debt, equity and internal accruals. ''We will raise a loan debt of around Rs65 crore, invite Rs15-crore equity and invest Rs20 crore through internal generations,'' he added.

TT Ltd, which is consolidating and expanding on the complete value chain — from fibre to garments, is confident of capturing opportunities thrown up by the post quota regime. The company has also entered cotton ginning and trading in the last two years, and is now planning an ultra modern ginning facility to take care of quality issues.

TT yarn is used in the production of some of the most respected labels in Switzerland, Denmark, Germany, Hong Kong, Finland, Norway, Sweden, USA, Australia, which consider its products matching their high standards of quality.

The company expects a 25 per cent growth in its exports this fiscal over last year's Rs82 crore, Jain said.