Tag Archives: Nuvo Textiles

Aditya Birla Nuvo’s Textiles Revenue To Increase Two Fold By Next 5 Yrs

Diversified Aditya Birla Nuvo anticipates its textile section to more than double its income to Rs 750-800 crore by the next four-five years.

The textiles biz of the company falls under Jaya Shree Textiles, a completely-owned division that brings in 14% to the company’s manufacturing biz.

At present, the textiles biz, which makes linen fabric and yarn, has revenue of Rs 300 crore.

Aditya Birla Nuvo has retail stores under the brand Linen Club, which retails fabric and ready-made garments. It plans to open 14 new outlets in the current fiscal year from 46 currently.

S Krishnamoorthy, president, textiles division, stated, “Our focus is to expand our retail footprint going forward and in the next five years we plan to have 200 stores. It will all be franchisee outlets.”

The company is eyeing a promotion operation for Linen Club and has outlined a capex of Rs 15 crore for the existing fiscal.

The stores are likely to see a same-store sales expansion of 15% in the existing fiscal as against an average of 15-20% during the last years.

Aditya Birla Nuvo also proposes to lift up linen fabric capacitance by 30-40% by 2013.

“We will add capacity in our existing plant in West Bengal. The total linen capacity at the plant is 9 million metres per annum now,” Krishnamoorthy added.

Aditya Birla Nuvo also stated that it is eyeing an increase in raw material costs and has already augmented costs of fabric by 7-8% during the past six months.

On August 19, the stock of the company declined 1.9% to end the week at Rs 853.50 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 969.70 and a low of Rs 728.05 on BSE.

Current EPS & P/E ratio stood at 84.57 and 10.09 respectively.