Punjab National Bank will provide a term loan to the tune of 60 per cent of the estimated project cost. Uniroyal Textile Industries Limited and its sister concerns will put in 40 per cent share in the equity of the project.

Clariant Laboratories Limited executive director Akhil Mahajan told The Financial Express here on Monday that to begin with, the new project will be set up with an estimated capital cost of about Rs 500 lakh. In the second phase, the company will set up an integrated bulk drugs units too. The production facilities will be for manufacturing tablets, capsules, dry and wet syrups, injectibles, ointments and eye-ear drops. These will comply to GMP standards of international level. Negotiations of an international tie-up are under way.

The company has acquired land at Derabassi near here and construction has begun at thesite. The orders for plant and machinery had been finalised. He said that though Uniroyal was a listed company, the new company Clariant Laboratories Limited had no plans to tap capital market in the near future. The company plans to commence commercial production at this new project before next year's financial closing.

Mahajan, who is managing director of Uniroyal Textile Industries, told that the company's sales during the year ended March 1999 were to the tune of about Rs 336.86 lakh as against Rs 300.08 lakh during the year ended March 1998. The net profit had risen from Rs 15 lakh during 1998 to Rs 37.56 lakh. About the projected turnover of the company during 1999-2000, he said that it would be around Rs 450 lakh and gross profit of about Rs 125 lakh.

He claimed that Uniroyal had received an excellence award in productivity, quality, innovation and management and he had received `Udyog Rattan Award' from the Institute of Economic Studies.

Uniroyal has been engaged in the manufacture ofcomputerised woven labels on state-of-the-art Swiss plant and is one of the most modern woven label units in the country. The manufacturing facilities are at Panchkula near here and marketing offices were located all over the country. The company came into being in 994-95 and in a short span has created a niche in the export market and foreign buying houses which were engaged in manufacturing and export of ready made garments.

The company had gone in for 50 per cent expansion of its existing capacity during September last year and the plant was running at 95 per cent of capacity utilisation even after expansion.

As per the current financial closing, the company has been able to achieve 52 per cent increase in sales of woven labels over the previous year and the net profit increased by 150 per cent over the previous year. It has set a target to achieve 30 per cent rise in turnover and 165 per cent on its net profits in the current year of operations.