The Hindu : Business : Kitex declares 10 per cent

Online edition of India's National Newspaper
Wednesday, Oct 26, 2005

Business

Business

Kitex declares 10 per cent

Staff Reporter

The board has approved a backward integration project

KOCHI: The Board of Directors of Kitex Garments Limited has declared an interim dividend of 10 per cent. The company recorded a turnover of Rs.62.73 crores and a profit before tax of Rs.5.6 crores for the half year ended September 30, 2005, as per the unaudited financial results published here.

The board has approved a backward integration project at a cost of Rs.45.80 crores to overcome hindrance faced in the processing of yarn and fabric. The project is expected to be completed by June 2006. The new knitting and processing plant will have a capacity to process around 22,000 kgs. of yarn daily. The project utilises highly sophisticated dyeing and printing unit with German technology. The company expects a substantial increase in profitability and improvements in quality on account of in-house processing, according to a statement issued by it. The company's ongoing expansion project at a cost of Rs.10 crores to enhance production capacity of the unit is expected to be commissioned before December 31, 2005. The company has confirmed orders worth USD 25 million for delivery during 2006 and has also made a new marketing arrangement with a leading buyer in the United States.

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