Kamla Dials clarifies on news item regarding acquisition in Switzerland

With reference to the news item appearing in a leading financial daily titled, "Kamla Dials buys production plant in Switzerland", Kamla Dials & Devices Ltd has clarified about the following:

"1. The Company has established a wholly owned subsidiary Company, Pylania AG in Switzerland. The subsidiary was formed with the objective of manufacturing watch dials and hands to cater to the high end watch market in Switzerland which focuses on high end products.

2. The subsidiary has acquired from Mr. J Boegli, an existing watch dial manufacturing plant in Switzerland for CHF 950000 (US$ 750000). We estimate that the further investment of US$ 450000 is required immediately for purchase of equipment and Working Capital to start operations. A further investment of US$ 1.5 Million is envisaged in phase 2 to enlarge the scope of work.

3. The subsidiary is expected to commence trial runs in June, 2007 and deliveries are expected to begin by July, 2007.

4. ETHOS, the chain of retail outlets selling Swiss watch brands has at present eight stores. The Company plans to increase the chain upto 40 retail outlet by 2009-10 at an estimated total investment of Rs 45 crores. It is envisaged that eight new stores will be opened during the year.

5. During the fiscal 2006-07, the Company's estimated turnover is Rs 85 cores. For the current year, it hopes to increase revenues to about Rs 120 crores."

Source : Equity Bulls

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