Arvind plans to increase borrowing limit to Rs 5,000 crore

BY - Vaishnavi Gupta
Senior Correspondent, IndianRetailer.com & Retailer Magazine Jul 08, 2014 / 3 MIN READ

Arvind plans to increase borrowing limit to Rs 5,000 crore

By PTI

New Delhi; Apparels and textiles firm Arvind Ltd plans to increase its borrowing limit to Rs 5,000 crore in order to fund expansion activities as well as for future business requirements.

The Ahmedabad-based company will be seeking shareholders' approval on the same at its Annual General Meeting on July 30.

In a filing to the BSE, the company said its current borrowing limit is Rs 3,000 crore, which was approved in the AGM held on September 30, 2006.

"Keeping in view the company's business requirements and growth plans, it is considered to increase the said borrowing limit from Rs 3,000 crore to Rs 5,000 crore," the filing said.

The company was authorised to "create mortgage and/or charge on the immovable and movable properties" with board's approval through the 2006 special resolution.

Arvind is also seeking reappointments of its incumbent Chairman and Managing Director Sanjay S Lalbhai and company CFO J K Shah as directors.

Arvind Ltd had a total income of Rs 4,775.48 crore and net profit of Rs 361.39 crore in the fiscal ended March 31, 2014.

Started in 1930 as a textiles manufacturer, the company now has interests in advanced materials, chemicals & dyes, retail, engineering, real estate, sustainable agriculture and telecom.

It manufactures for leading brands, including Arrow, Flying Machine, USPA, New Port and Mega Mart.

Shares of Arvind Ltd were trading down by 0.49 per cent to Rs 244.20 per scrip on the BSE during afternoon trade.