BSL to invest Rs 65 cr for expansion

The company would diversify into manufacturing of silk fabrics with an estimated investment of Rs 15 crore.

Textile company, BSL Ltd on Thursday said it will invest around Rs 65 crore for its diversification, capacity expansion and power generation plans.

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The total proposed capital expenditure of Rs 65 crore would be financed by term loans and internal accruals, the company informed the Bombay Stock Exchange.

The company would diversify into manufacturing of silk fabrics with an estimated investment of Rs 15 crore and plans to increase its synthetic and worsted spinning capacities by 8,000 spindles at an estimated cost of Rs 25 crore, it added.

It also plans to set up 6 MW thermal power station for captive utilization for around Rs 25 crore.

The board of directors has also approved the proposal for amalgamation of BSL Wulfing Ltd, a wholly-owned subsidiary with itself, subject to approval from shareholders and other regulatory authorities.

The board at its meeting held on May 17, has recommended dividend of 10 per cent on equity share capital of the company subject to shareholders approval.

The shares of the cpompany were trading at Rs 39.85, down 0.13 per cent on the BSE.