Vapi, March 30: Raymond Limited expects a turnover of Rs 300 crore from the capacity expansion at its Vapi facility in Gujarat.

The firm started the first phase of operations at the plant today with a capacity of 3 million metres of worsted suiting fabric.

“We have lined up a second phase of expansion by another 3 million metres at the facility, which will go onstream by December. The total capacity should add Rs 300 crore of annual revenue,” said Gautam Hari Singhania, chairman and managing director, Raymond Limited.

“We have invested Rs 120 crore in the first phase and will invest another Rs 197 crore for the second phase,” said Singhania. After the second phase, the company will have a total capacity of 31 million meters per annum for worsted suiting.

“The fabric produced in the plant will cater to the anticipated demand for 2007-08 in both the domestic and the export market. Close to one-third of the production shall be exported initially,” said Pradeep Bhandari, group president, Raymond Limited.

“Though we are definitely keen on growing our exports market, our mainstay is the domestic market with the growing demand and higher margins,” said Singhania.

“While Europe and America are the major countries where we export, Japan is also emerging as an important export destination as the country has started looking at India again for viable suppliers,” said Bhandari.

The company expects 20 per cent growth in exports for the current fiscal. Its textile division had recorded a revenue of Rs 612 crore for the nine months ended December 2005, a growth of 12 per cent over the corresponding period last fiscal.