Chandigarh: Oswal Woollen Mills (OWM), part of Rs2,500 crore Nahar Group, plans to invest Rs110 crore on capacity enhancement and opening of new outlets as part of its effort to achieve a turnover of Rs720 crore by 2010-11.
The company attained a business of Rs500 crore, including Rs150 crore from Monte Carlo brand, in 2008-09 and expects to achieve a turnover of Rs600 crore this fiscal.
OWM claims to occupy 50% space in premium woolen knitwear segment with its Monte Carlo brand. It expects to spend Rs15 crore in the opening of new outlets of Monte Carlo brand in the country.
The company also plans to tap overseas markets by opening Monte Carlo outlets in London and Barcelona next year, OWM executive director Sandeep Jain said. Monte Carlo’s collection comprises winter, summer and sports wear.
The company would use internal accruals and banks debts to fund the projects, he said.
OWM wants to cater to the growing denim market and has decided to expand the capacity of cotton spinning at a capital outlay of Rs80 crore. As per the proposed plan, the company will add 12,000 more cotton spindles at its Ludhiana plant which will enhance the capacity from 16 million metres per annum to 22 million metres.
“The additional capacity which is being created will be ready by March next year and it will meet domestic as well as export markets,” he said.