Jaya Shree Textiles, a part of Aditya Birla Nuvo, plans to invest Rs 250 crores to further expand yarn and fabric production at its Rishra (West Bengal) manufacturing unit. It will fund the second round of expansion through internal accruals. The company sees the niche market for linen fabrics, registering quicker growth in India, as fabric makers introduce new designs to attract the younger generation. The earlier round of Rs 100 crores expansion of its Rishra facility is set to be completed this month, taking its production capacity to 3,000 tonnes of yarn and 10 million metres (metres) of fabric per annum.

“We have now proposed another expansion plan to take the capacity to 6,000 tonnes of yarn and 13 million metres of fabric annually in the next two years. The proposal, which is yet to be finalized, may involve an investment of Rs 200-250 crores,” S Krishnamoorthy, CEO (Domestic Textiles), told media persons on the sidelines of the launch of a new Linen Club showroom recently.

The company expects to clock a turnover of Rs 1,200 crores this fiscal, up from Rs 1,100 crores last year. Jaya Shree Textiles has a share of about 70 per cent of the pure linen fabric market in India, which is estimated to be 50 per cent of the entire linen fabric market of Rs 2,000 crores. Linen is still a niche market in India, with prices ranging from Rs 350 to Rs 2,500 a metre. “We are planning to expand the network to 250 showrooms in the next three years, both through the franchisee and owned route,” Krishnamoorthy said.