Kalol (Gujarat)-based leading technical textiles company Texel Industries Ltd. expects to start commercial operations of its 10,080 MT facility for geosynthetics products at Kheda (Gujarat) in next few days.
Having more than three decades of experience in the technical textiles, the company is investing Rs. 29.92 crore for this expansion and has already deployed Rs. 14.73 crore from internal accruals and borrowings.
Post completion of the expansion, installed capacity of the company will double to more than 19,000 MT per annum.
In a statement, the company informed its plans to raise up to Rs. 12.49 crore from the rights issue, which is open for subscription from 31 August to 14 September. Proceeds of the rights issue will be utilised to fund the proposed expansion in Kheda facility.
The company plans to issue up to 31,22,398 partly paid-up equity shares of face value of Rs.10 each at an issue price of Rs. 40 per equity share (including premium of Rs. 30 per equity share).
Shailesh Mehta, MD of the company said “Post completion of the expansion, installed capacity of the company will double to more than 19,000 MT per annum. Keeping in line with its continuous efforts towards sustainability, Texel is now expanding its product mix to include various new products such as Roof Tile Underlay, Lumber Wrap and a Floating cover for water reservoirs. The floating cover is a cover for farm ponds and water reservoirs, which prevents 30 per cent loss of water through evaporation.”
The company offers wide range of geosynthetic textile products, which includes tarpaulins, geomembranes, vermibed, geotank, geotube, grow bags azollabed and waterproof membrane.
For FY20-21, the company reported sales of Rs. 82.79 crore and net profit of Rs. 2.13 crore. For the Q1 FY22, the company posted a healthy 51 per cent growth in the net sales at Rs. 27.74 crore. Net profit was up 70 per cent at Rs. 75 lakh.
The performance was achieved on the back of robust demand in the domestic markets in the Tier-2, Tier-3 cities and rural areas post unlock.
