The Ambika Cotton Mills Ltd is to invest 205m rupees ($4.4m) in a modernisation programme at its spinning units, which the company claims will help it achieve an increased sales turnover in the region of an extra 20 per cent.

Speaking to the Hindu Business Line, company managing director, Mr PV Chandran, said: "The modernisation project now underway will bring an additional 130m rupees ($2.8m) turnover, but it may get reflected fully in the 2002-2003 working results".

Ambika has made the investment in its two textile units under the Textile Technology Upgradation Fund Scheme and funding from the Industrial Development Bank of India.

The project will see the company increasing its spindles from its current 35,000 in the two plants in the Dindigul district of Tamil Nadu, to 41,000.

The company hopes that the project will improve the export side of the business, which Mr Chandran believes will enable the company to record a turnover of around 620m rupees ($13.3m), 81 per cent of which will be made up of exports.

The company currently exports cotton yarn countries such as Taiwan, Korea, Indonesia, Hong Kong and China.