Indo Count plans Rs 2,000 mn capex, PAT up 241% in FY21

Mumbai

Indo Count Industries Ltd (ICIL), one of India’s largest home textile manufacturers, has recorded 600% increase in PAT in Q4 FY21 to Rs 580 million from Rs 80 million in Q4 FY20. PAT was up 241% in 2020-21 to Rs 2490 million from Rs 730 million in 2019-20. The company registered total income of Rs 25,570 million in 2020-21 an increase of 20% compared to Rs 21,350 in 2019-20. Indo Count Industries has also announced Rs 2,000 million in capital expenditure (capex) to increase capacity of bed linen, Top of the Bed (TOB) products and spinning. 

Anil Kumar Jain, Executive Chairman, Indo Count Industries, said, “It gives me immense pleasure to share that we have delivered growth despite challenging environment and lockdown restrictions. Our growth during the year was propelled by higher demand for home textile products and consequent increase in our market share globally. Furthermore, our persistent focus on expanding our current capacity, growing our branded portfolio, enhancing our domestic presence, improving ecommerce and building and creating a sustainable value chain have helped us thrive and be future ready.”

For FY21, the company delivered record sales volume of 78.2 million metres, a growth of 26% YoY. The company is strongly moving towards business-to-consumer (B2C) and direct to customer (D2C) segment through high quality product offerings across varied price points, building visibility through digital campaigns and leveraging omni-channel & e-commerce distribution. It is focusing on brand promotion in US, UK, Middle-East and India through 10 active brands. Innovation and technological capabilities along with licensed brands, patents, trademarks will further strengthen brand offerings, said ICIL in the press release.

To drive next leg of growth, the company is planning to expand capacity with total capex of Rs 2,000 million.

ICIL will increase its bed linen capacity by about 20% from existing annual capacity of 90 million metres to 108 million metres by debottlenecking and balancing facilities. It has planned a brownfield investment of Rs 1,500 million for adding commensurate cut & sew facilities and for enhancing the capacity for Top of the Bed (TOB) products. 

Indo Count Industries will modernise its spinning units with compact spinning technology. Post modernisation, which entails a capex of Rs 500 million, will also be used for captive consumption in the home textiles unit.

These investments are expected to increase the revenue by approximately Rs 600 crores over the next 2 years, post commissioning. The total capex of Rs 200 crores will be funded by a mix of internal accruals and debt and is expected to be operational in H2FY22.

Recently, Mohit Jain, Executive Vice Chairman of Indo Count Industries Ltd, was honoured with The Economic Times Business Leader:  Youth Icon Textiles Award 2021. The 2021 edition of the Awards aimed to bring to the forefront noteworthy business leaders who are spearheading our economy by inspiring accelerated and sustainable growth in their respective fields, post the unprecedented COVID Crisis.

Commenting on the achievement, Mohit Jain, Executive Vice Chairman of Indo Count Industries Ltd, said, “At Indo Count, our key focus has always been to weave an unforgettable legacy of corporate excellence and exceptional service. We continue to transform the world of textiles, one thread at a time.”