Texel Industries Ltd. plans to start commercial operations at its expanded facility for geosynthetics products at Kheda, Gujarat, India, by the end of September 2021. The company is investing $4,100,207 (Rs. 29.92 crore) for this expansion and has already deployed $2,018,584 (Rs. 14.73 crore) from internal accruals and borrowings. The new facility has a capacity of producing 11,111-ton (10,080-tonne) per annum, and post-completion of the expansion, installed capacity of the company will double to more than 20,944 tons (19,000 metric tons).
The company plans to raise up to $1,711,617 (Rs. 12.49 crore) from the rights issue, which is open for subscription from August 31 to September 14. Proceeds of the rights issue will fund the proposed expansion at the Kheda facility.
The company plans to issue up to 31,22,398 partly paid-up equity shares of face value of $0.14 (Rs. 10) each at an issue price of $0.54 (Rs. 40) per equity share (including a premium of $0.41 [Rs. 30] per equity share). The rights entitlement ratio for the proposed rights issue is 55:92, i.e., 55 Rights Equity Shares of $0.14 (Rs. 10/-) each for every 92 Equity Shares of $0.14 (Rs. 10/-) each held by the equity shareholders as on the record date, August 17, 2021. The closing price of shares on September 2, 2021, was $0.95 (Rs. 70.25) per share.
“Expansion at our new facility in Kheda is going as scheduled and we plan to start commercial operations by end of September 2021,” says Shailesh Mehta, managing director, Texel Industries Ltd. “Keeping in line with its continuous efforts towards sustainability, Texel is now expanding its product mix to include various new products such as roof tile underlay, lumber wrap and a floating cover for water reservoirs. The floating cover is a cover for farm ponds and water reservoirs, which prevents 30% loss of water through evaporation.”
Established in 1989, Texel Industries Ltd. is an ISO 9001:2015 certified company engaged in manufacturing of tarpaulins and geomembranes with an experience of more than three decades. The company manufactures a wide range of geosynthetic textile products, including geomembranes, vermibeds, geotanks, geotextile tubes and HDPE azollabeds. Texel products are used in agriculture, aquaculture, horticulture, animal husbandry, civil engineering, water harvesting, water conservation and disaster relief, landscaping, transportation, and waste management.