Leading exporters of silk, based at Kolkata, Eastern Silk Industries Ltd (ESIL) announced that the company intends to raise Rs 70 crore through foreign currency convertible bonds (FCCB) and private placement of equity for expansion of output from 6 lakh to 12 lakh metres per year in two phases at its plant in Karnataka.
Chairman, ESIL, S Shah opined that the company had already started talks with five overseas as well as local financial institutions for FCCB and private placements. The ESIL anticipates to finalise the FCCB issue in coming two months, he added.
Shah added the company was expecting cheap funds from foreign market as its performance was encouraging.
The group was also looking for tie-ups with other companies such as Eastern Jingying and Sstella Silks Ltd with ESIL.
The offer was currently pending before the Karnataka High Court.
The company is also planning to establish a unit for silk made goods, such as garments, pillow covers and bed covers. This plant will be fully operational in next 12-15 months and will utilise the fabrics made at Anekal plant, he informed.
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