Exim Bank acquires 3% equity stake in BRF

26 Jul '05

2 min read

Export-Import Bank (Exim Bank) has acquired a stake in a fabrics and garments producing company, Bombay Rayon Fashions(BRF) by purchasing 10 lakh shares for Rs 50 per share, which is three percent equity stake at an investment of Rs 5 crore.

S Sridhar, Executive Director, Exim Bank informed the bank has sanctioned BRF, a term loan of Rs 40 crore to fund Rs 161 crore Greenfield Integrated Textiles unit at an apparel park at Doddaballarpur, near Bangalore.

Prashant Agrawal, Managing Director of BRF said the company will finalize particulars of its IPO to complete funding for the Greenfield Textiles unit in couple of weeks.

BRF has also tied up with banks under Government's Textile Upgradation Fund Scheme for loans, making the company eligible for interest subsidy of 5 percent and a direct subsidy of 10 per cent of the investment for processing machinery.

The Rs 140 crore Bombay Rayon Fashions is a premier producer and exporter of fashion fabrics and garments. It offers its products to various reputed global brands from Europe and the US, including C & A, DKNY, Liz Claiborne, Wrangler, Federated Stores, Tom Tailor, Guess and Kiabi.

After completion of new plan the company's weaving capacity will rise to 60,000 metres a day from 20,000 and garment capacity to 30,000 pieces a day from 8,000 pieces.

The BRF will also setup own processing capacity of one lakh metres per day. The project is expected to be completed by the month of March in 2006.

More Textiles News - India...