Apparel exporter Orient Craft Ltd (OCL) plans to raise around Rs 3 billion in four months through the initial public offerings and private equity, a senior official said Friday.
OCL, the global retail suppliers such as Gap Inc. and Marks & Spencer Group Plc, will use the Rs 2.5 billion from the fund to set up garment unit, Managing Director Sudhir Dhingra said.
"This will be a mixture of both IPO and private equity. We are also open foreign equity. We are still planning," Dhingra told Reuters.
Companies, which has 21 units, expects to increase its daily garment production to 150,000 units from 125,000 once the two new plants it is building began in August.
OCL posted a net profit of Rs 270 mn and turnover of Rs 7.45 billion in 2005/06. Dhingra said the company expects net profit of Rs 645 mn and turnover of Rs 9.5 billion in the current fiscal year.
"We're trying to be a $ 1 billion company in the next 8 years," he said.
OCL has obtained "in-principle approval" from the government to develop 500 hectares (202 acres) of Special Economic Zone (SEZ) where tax concessions would bring savings for OCL, Dhingra said.
"We will move existing businesses and future growth will be in the SEZ. I want to be 'Clothing City' in which global apparel retailers, distributors, agents buy packaging company will get all services under one roof," he said.
Export-oriented OCL was also considering entry into India, the retail clothing market with a Western brand, he said.
"We have relationships with all major brands that are not too difficult for us to be a JV partner or license." Www.economictimes.indiatimes.com
OCL, the global retail suppliers such as Gap Inc. and Marks & Spencer Group Plc, will use the Rs 2.5 billion from the fund to set up garment unit, Managing Director Sudhir Dhingra said.
"This will be a mixture of both IPO and private equity. We are also open foreign equity. We are still planning," Dhingra told Reuters.
Companies, which has 21 units, expects to increase its daily garment production to 150,000 units from 125,000 once the two new plants it is building began in August.
OCL posted a net profit of Rs 270 mn and turnover of Rs 7.45 billion in 2005/06. Dhingra said the company expects net profit of Rs 645 mn and turnover of Rs 9.5 billion in the current fiscal year.
"We're trying to be a $ 1 billion company in the next 8 years," he said.
OCL has obtained "in-principle approval" from the government to develop 500 hectares (202 acres) of Special Economic Zone (SEZ) where tax concessions would bring savings for OCL, Dhingra said.
"We will move existing businesses and future growth will be in the SEZ. I want to be 'Clothing City' in which global apparel retailers, distributors, agents buy packaging company will get all services under one roof," he said.
Export-oriented OCL was also considering entry into India, the retail clothing market with a Western brand, he said.
"We have relationships with all major brands that are not too difficult for us to be a JV partner or license." Www.economictimes.indiatimes.com
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