Precot Meridian to invest Rs 200 crore in Hassan unit

Precot Meridian to invest Rs 200 crore in Hassan unit

Precot Meridian to invest Rs 200 crore in Hassan unit

Leading yarn and fabrics manufacturer Precot Meridian Ltd is planning to invest an additional Rs 200 crore at its technical textile plant in the Hassan SEZ, which the company had established in June 2013.

Talking to Deccan Herald, on the sidelines of State Level Textile Investors Meet on Saturday, Precot Meridian Limited CEO and Director Ashok Kulkarni said, “Last year, we invested Rs 189 crore in Hassan. Now we are committed to an additional equivalent capacity at an investment of roughly Rs 200 crore in the next fiscal.” 

With promoter funding and a loan from ICICI Bank, the company is currently raising the required capex for the project. It will hire an additional 400 employees for the unit, Kulkarni said.

The integrated technical textile plant produces fibre-to-finish products using 100 per cent cotton. The fabrics are non-oven manufactured under high water pressure. They are also used in hygiene, health and healthcare products made with natural, biodegradable raw materials using ecologically sustainable methods that meets European Union, Japan and US pharmacopeia standards.

Precot Meridian is a leading player in the textile industry, with annual turnover of Rs 627 crore in fiscal 2014 and targeted revenues of Rs 750 crore in the next fiscal.

The company started production in 1964 with initial capacity of 12,096 spindles at Kanjikode in Kerala. It now has units in the four southern states of India namely, Tamil Nadu (six units in Coimbatore), Kerala (Kanjikode and Palakkad), Andhra Pradesh (Hindpur) and Karnataka (Gowribidanur and Hassan) with total spinning capacity of 2,25,000 spindles and 117 looms.

Kulkarni welcomed the state government’s New Textile Policy as it facilitate emerging technical textiles in critical areas such as production, technology, research and development. The policy will encourage integrated development in the sector aiming to sustainability of the textile units in the State.

Kulkarni urged the state government to scrap VAT (value added tax) as Maharashtra and Gujarat have done.

Precot Meridian currently exports its healthcare products like cosmetic pads, baby wipes and observant cotton to Germany, UK and Eastern European nations.