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BANGALORE: The city based Eastern Silk plans to setup a new unit for carpet and made-ups such as curtains and pillow covers at its existing unit in the city, sources said here on March 28.

Further the company also plans to raise the silk fabric capacity in the same unit. The company will provide capital expenditure of Rs80 crore for the new unit. The land for the new unit has been acquired and orders for machinery have been placed.

The company expects to issue foreign currency convertible bonds worth around Rs200 crore to finance the capital expenditure and also to repay a significant portion of its secured loans.

The new unit is expected to produce 1500 sets of velvet carpets, curtains and pillow covers per annum.

The expansion of the fabric capacity at the old unit will help to increase the current capacity of 15 lakh metres to 19.5 lakh metres per annum.