INDIA: Shri Lakshmi Net Rises to Rs. 17 cr on Technical Textile Spur
Shri Lakshmi Cotsyn Limited (SLCL), diversified group has reported a net profit of Rs 17.08 crore for the FY09 second Quarter ended December 31, 2008 up by 4.6 % as compared to a net profit of Rs 16.32 crore posted in the same period of last year.
Total revenue for the second quarter ended December 31, 2008 stood at Rs 290.52 crore a rise of 23.7 % as against Rs 234.76 crore in the corresponding period last year.
Shri Lakshmi has increased the capacity of its Fusible interlining division from 12.5 to 24.5 mn metres p.a. At present, Fusible Interlining business contributes Rs 86 cr to the total annual sales. The new manufacturing facility at Fatehpur district in Uttar Pradesh is expected to generate another Rs 80 crore to the top line of the company.
The company has also acquired a unit at NOIDA for manufacturing of comforters/ quilts with installed capacity of six lac pcs per annum, which will commence production from mid February 2009. This facility is expected to contribute about Rs 55-65 cr to the annual sales of Shri Lakshmi Cotsyn.
Dr. M. P Agarwal, CMD, Shri Lakshmi Cotsyn Limited said “SLCL has successfully diversifying its portfolio to de-risk its business model. We have strategically increased our focus on high margin business such as technical textile and retailing. We are witnessing a high growth of about 35% in the technical textile segment due to increased security related threat to our country. The demand for security related technical textile has gone up substantially due to the recent terror attacks. Shri Lakshmi will supply high-end Level-7 security protection 360 degree armored vehicles, First of its Kind in India with bullet- mine and bomb -proof accessories along with safety & security related equipments. Our manufacturing facility for this venture has recently commenced commercial production and we expect our first vehicle to come out of the factory in a month’s time. We have received orders for about 100 vehicles as we are in talks with Indian paramilitary forces and also with some high-value customers in India, Europe and the Middle- East who want their vehicles to be armoured with highest level security protection accessories”
According to Dr. Agarwal “high inflation rate and slow industrial growth have been undermining the actual potential of the textile sector. The recent financial bailout stimulus package announced by the government is quite inadequate and negligible compared to what the competing nations have offered to their industry to overcome recession. The textile sector is highly labour intensive and requires much bigger financial relief. But going forward, we have high hopes from the government on this front” he added.
Added: February 4, 2009 Source: Agencies