LNJ Denim to invest Rs 350 cr for expansion

“We will invest Rs 150 crore in the current fiscal and then Rs 200 crore in 2012-14 to increase our capacities and cater to the growing international and domestic demand,” LNJ Denim Chief Executive YC Gupta told reporters here.

The company,which reported revenues of Rs 180 crore for the last fiscal,expects to touch Rs 225 crore revenues in the current fiscal and Rs 350 crore in FY13.

“We expect to touch revenues of Rs 600 crore by 2014-15. The total fabric capacity will touch 36 million metres per month by this time,” Gupta said.

In the first phase of expansion in the current fiscal,the company expects its fabric capacity to touch 15 lakh metres per month from the current 10 lakh metres.

Further its yarn capacity will go up to 1,500 tonnes per month from the present 600 tonnes per month.

“We will invest Rs 150 crore to set up imported machines at our Banswara unit in Rajasthan,” Gupta said.

The company,which supplies its denim fabrics to leading companies like Diesel and Lee,announced the launch of a new range of denims.

According to industry estimates,Indian denim wear market is nearly USD 1 billion and is expected to grow to USD 2.1 billion by 2015.

Textiles firm RSWM reported total income of Rs 1,964 crore for the year ended March 31,2011 as compared to Rs 1,541 crore in the previous year.