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Pioneer Embroideries invests Rs 0.58B in specialty yarn

Sep 02, 2021
Pioneer Embroideries invests Rs 0.58B in specialty yarn

Pioneer Embroideries is planning to invest Rs 0.58 billion so that it can increase its capacity to 26,000 tonnes per annum by adding 8,000 tonnes.

Pioneer Embroideries is a manufacturer of speciality polyester filament yarn. It is expected that the company will set up a new manufacturing unit on existing factory land. This unit will be operational b FY23. If the unit works at its full capacity, it has the potential to generate sales revenue of Rs 1.1 billion through a mix of exports and domestic sales. The current capacity utilisation is 95%.

Germany-based Oerlikon Barmag Group which is a known supplier of textile extrusion equipment is going to supply the major equipment. Also, the company has managed to procure Rs 0.18 billion from internal accruals and the rest it will take from bank borrowings.

After the Covid scenario, the demand for the yarns in newer segments like technical textiles and home textiles has increased due to which the capacity has also increased. The focus of the company is on POY-based speciality textile avenues like flame retardant, value-added DTY yarn for non-apparel segments, and automotive, anti-microbial.

According to Harsh Vardhan Bassi, Managing Director, Pioneer Embroideries, in these difficult times of Covid, the company has been able to grow because of the increased demand from the home textile segment. He also said that the focus of the company is to improve its operating margins with the help of a higher share of value added products and through operational efficiencies.

As of the present state, the company deals in almost 1,200 shades and over 500 product variants for specific needs.

Source – The Hindu Business Line

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