Mahalaxmi Rubtech to invest 400mln-500 mln rupees in FY09

MUMBAI, May 20 (Reuters) - Textile firm Mahalaxmi Rubtech Ltd MAHR.BO is planning to invest between 400 million and 500 million rupees in FY09 for expansion of its technical textile division, a top official said.

“We are looking at various options, including internal accruals and private placement of securities”, managing director Rahul Parekh said on Tuesday.

The company operates in three segments home textile, apparel textile and technical textile and rubber products.

Technical textile currently make up about 25 percent of the firm’s total revenue, while the home segment contributes about 35 percent to 40 percent of annual revenue.

Expansion in the firm’s technical and home divisions will lead to revenue momentum in the coming year, Parekh said. The company aims to boost revenue to 1.45 billion rupees with the investments, he said.

The company is expected to report its FY08 results by the month-end.

Shares of the company were up 1.25 percent at 92.90 rupees in a weak Mumbai market. (Reporting by Aniruddha Basu; Editing by Ramya Venugopal)