Mahalaxmi Rubtech to invest Rs400mn-500mn in FY09

Reuters

Mumbai: Textile firm Mahalaxmi Rubtech Ltd is planning to invest between Rs400 million and Rs500 million in FY09 for expansion of its technical textile division, a top official said.

“We are looking at various options, including internal accruals and private placement of securities”, managing director Rahul Parekh said on Tuesday.

The company operates in three segments home textile, apparel textile and technical textile and rubber products.

Technical textile currently make up about 25% of the firm’s total revenue, while the home segment contributes about 35% to 40% of annual revenue.

Expansion in the firm’s technical and home divisions will lead to revenue momentum in the coming year, Parekh said. The company aims to boost revenue to Rs1.45 billion with the investments, he said.

The company is expected to report its FY08 results by the month-end.

Shares of the company were up 1.25% at 92.90% in a weak Mumbai market.