NEW DELHI: Spentex Industries, the country’s biggest yarn maker, has chalked out ambitious plans to nearly double its manufacturing capacity in two years by expanding existing units and acquiring companies in India and abroad.
“We are aiming to almost double our capacity to 10 lakh spindles in the next two years from 5.70 lakh spindles at present. We would add 2.5 lakh spindles this year itself,” said Spentex Managing Director Mukund Choudhary.
The company hit the headlines for big time takeovers including Cimmco Spinners of S. K. Birla Group and Indo Rama Textiles. Last year, it also acquired Uzbekistan-based Tashkent-To’yetpa Tekstil for Rs364 crore, which catapulted it ahead of Vardhman group in terms of manufacturing capacity.
Choudhary said Spentex would prefer aggressive inorganic growth. “We will not go in for any greenfield projects but would rather expand our existing ones and buy out facilities wherever there are opportunities,” he said.
Spentex, which has a turnover of about Rs1,200 crore, would look for medium to large sized companies for acquisitions, he said. The company could clinch a couple of deals in the next few months, he said, but did not give details about the potential targets.
Spentex, which grew out of a family owned trading firm CLC Group, has been on an acquisition spree in the last three years, buying out at least six companies so far.
It has expanded its capacity by buying out RPG’s group facility in Baramati, assets in Ahmedabad from Bank of India, Indo Rama’s units at Pitampura and Butibori and Amit Spinning in Kolapur last year.