Pioneer Embroideries invests Rs 0.58B in specialty yarn
Pioneer Embroideries has planned 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 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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