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Titan Industries plans to raise Rs165 crore throug a mix of debt and equity to fund its expansion. The company, which is scripting a turnaround, is planning to use the funds to finance its foray into new businesses, substantial expansion of facilities in existing businesses and fund working capital requirement. The company has outlined two possible growth scenarios - normal growth and aspirational growth - for five years. Under the normal growth, Titan is targetting a turnover of Rs 1,870 crore by 2009-10 (Rs1,082 crore in 2004-05).
Time products are estimated to contribute Rs835 crore (Rs601 crore), jewellery Rs 885 crore (Rs535 crore) and precision engineering coming in with Rs 100 crore (Rs 20 crore). According to the 'aspirational' scenario, backed by "ambitions and aspirations" Titan by 2009-10 is targetting a top line of close to Rs4,000 crore, which might see time products contributing Rs1,300 crore, jewellery a major Rs2,100 crore and precision engineering Rs490 crore. The company said under this scenario the net profit will be in the range of Rs300 crore.
The company has stated that in case, it decides to infuse capital through equity, the issue will be structured in a manner such that additional equity issued would not be more than 20 per cent of the existing paid-up capital of Rs82 crore. Titan has a debt of Rs318 crore which is nearly twice shareholders' funds.
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