Century Textiles sees exports rising 10% this fiscal

MUMBAI: B K Birla-controlled Century Textiles said it expects a 10 per cent rise in exports this fiscal, aided by the falling rupee. 

"Pursuant to weak global demand, our exports have been impacted but the weakening of the 
rupee will help us achieve a 10 per cent increase this fiscal year," Century Textiles Director Kumar Mangalam Birla said, addressing the company's shareholders at the 116th AGM here. 

He based his optimism on favourable raw material prices in the global markets and also the recovery in Western economies. 

"The textile sector is on a recovery path mainly due to favourable raw material prices as well as improved demand from the US and recovery in demand from Europe. Presumption of zero per cent excise on ready-made garments will also boost exports," Birla said, adding he expects the 
Indian economy to improve going forward. 

Total exports of the company stood at Rs 415 crore in FY'13 against Rs 367 crore in FY'12. 

"Economic problems faced by the developed countries have impacted developing economies, leading to a rise in 
inflation in these areas. While we witnessed a negative growth in exports, imports expanded mostly due to increase in imports of oil and gold. Negative growth in exports resulted in a sharp depreciation in rupee." 

He further said the company is taking steps towards increasing its cement capacity. 

"Civil and structural work of the Manikgarh unit II, 2.8 mtpa cement expansion plant and 60 mw captive thermal power plant, adjacent to the existing unit in Chandrapur in Maharashtra, is expected to be completed by October. The plant is expected to be operational by next March," he said. 

After expansion, the company's total cement capacity will increase to 12.8 mtpa, Birla added. 

Meanwhile, during the AGM, one shareholder, who had complaints about adoption of accounts and resolutions pertaining to payment of dividend, demanded poll. The poll will be held on July 26.