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Precot Mills to merge with Meridian industries

10 Mar '06

2 min read

Precot Mills is going ahead with proposed merger of Meridian Industries Ltd with itself and has fixed March 15, 2006 as the date for integrating the two companies.

Precot Mills said that after merger the turnover would be nearly Rs 350 crore with an employee base of over 4,300 employees compared to Precot Mills' employee base of 3,500 workers and a turnover of Rs 260 crore presently.

The company would absorb all the 800 employees working for Meridien Industries, said a senior official from Precot Mills.

Precot Mills has 1.26 lakh spindles, 88 looms and 1,344 rotors which would increase with the merger to 1.50 lakh spindles and rotors to 1,536.

Precot Mills will set up its garment unit in two phases to start production by September 2006.

In the first phase 400 stitching machines will be set up to produce two million pieces annually and in second phase additional 400 machines will be set up taking production capacity to four million pieces annually.

Investment of Rs 39.8 crore is to be made to increase spinning capacity by 13,846 spindles with in three years.

Another Rs 20.3 crore would be invested to add somet looms to its existing set of 88 rapier looms.

The weaving capacity of Precot Mills will increase to 7.5 million metres per annum from the current 5.3 million metres an increase of 48 per cent.

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