India : Modernization cum Expansion of Lambodhara Textile Project

Lambodhara Textile Ltd has informed that the Board of Directors of the Company has decided on an expansion and modernization plan and the details of the same is as under:
"The Board of directors of the company has decided to modernize the mill by installing additional spindles and machineries.
The Company proposes to complete the project by acquiring the following machineries:
- Installation of 8,128 additional spindles and replacing 3,968 existing spindles
- 12 sets of LMW Make LR6 / S Ring Frames of 1,008 Spindles each at an outlay of Rs 3.96 Crores.
- 4 Nos. of Savio Make Polar L Autoconers to be imported from Italy at an outlay of Rs 4.08 Crores.
- To install indigenous machines and accessories worth Rs.3.43 Crores which includes -
a. 2 Nos of Trumac DK 800 Carding machines
b. 2 Nos. of LMW LF 1400A Speed Frames
c. 2 sets of Lakshmi Caipo Slub Generators, Humidification Plant and other new accessories and electrical fittings.
To complete this proposed Expansion aim Modernization Project the company also proposes to build an additional 47,852 Sft., at an outlay of Rs 2.85 Crores
The proposed Modernization cum Expansion Project is estimated to cost Rs 15.75 Crores and the company plans to meet the cost of the project as under -
1. The Company has been sanctioned a Term Loan of Rs 12.00 Crores under the Technology Upgradation Funds Scheme (TUFS) of the Ministry of Textiles, Government of India.

2. Promoters contribution of Rs 3.75 Crores.
To effect smooth import of the machines under the Export Promotion Capital Goods (EPCG) Scheme, an one time usance Import Letters of Credit (360 Days) with a limit of Rs 4.00 Crores and an EPCG Guarantee limit of Rs 0.45 Crores has been sanctioned by State Bank of India, Commercial Branch, Tirupur.
The Company is planning to install 3,024 ring spindles along with Caipo Slub attachments. The necessary bale process for this addition is also in progress Keeping up with the culture of producing fancy yams, these installations will increase the availability of the products multifold. The increase in capacity will be operational by January 2008.
Some of the new products, which the company is planning to introduce, are -
- MULTI COUNT
- MULTI TWIST
- MULTI COUNT / TWIST WITH SLUBS
- SLUB ON SLUB EFFECTS
- STRUCTURED YARN - WITH MULTI COUNTS / TWIST
Another major advantage of these high-end Slub machines is that the simulation of the slub pattern can be viewed on a computer.
This provides the facility to judge the appearance of slub fabric on a computer which enables the company to effect necessary changes as per the requirements of the buyer if required. This would help the company to avoid unnecessary wastage of time and resource.
The directors are hopeful that these yams will be made available from Feb 01, 2008.
The Company has also commenced production of slub yams for knitting and has been very successful in marketing the same and the, volumes are’ picking up multifold month over month.
The directors of company are confident that on completion of the proposed project and after the introduction of the new varieties of yam, the Overall production shall improve multifold which shall take the Company to new heights."