Lambodhara signs lease pact to utilize spare capacity of Suriya Spinning

Lambodhara Textiles engaged in textile business operates a yarn producting mill specializing in synthetic yarns has entered into a lease agreement with Suriya Spinning Mills Unit B and Sri Akkamma Textiles to utilize their spare capacity of 3,024 spindles and 6,048 spindles respectively, for conversion of fibre into yarn.

This deal will enhance the spinning capacity of the company and will have an impact on its overall performance. The conversion of fibre into yarn is set to commence from November.

Shares of Lambodhara Textiles closed at ₹104.95, a gain of 3.5 per cent on the NSE.

Lambodhara Textiles Ltd is currently trading at Rs. 107.6, up by Rs. 6.05 or 5.96% from its previous closing of Rs. 101.55 on the BSE. The current market cap of the company is Rs. 92.18 crore.

Lambodhara Textile has been in existence since 1994 starting with a spindleage of 2,160 spindles and over the period of time it has been increased to 16,232 spindles. The company expanded capacity mainly through internal generation with minimum debt. In 2005–06 the company availed loans under TUFS to modernize 16,232 spindles and revamped the entire back process to adopt the latest technology available at a cost of 6 crores.

In the year 2007–08 the company implemented a modernization cum expansion program to increase the spindleage to 25,016 spindles.
The products of the company have been well established in the domestic market. The company also established to export yarn as soon as the modernization program is complete, that by Jan. 2008.

The company has also commenced production of slub yarns for knitting and has been very successful in marketing the same and the volumes are picking up multi fold month over month.

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