Companies

Pioneer Embroideries to invest ₹58 cr to make more speciality yarn

Our Bureau Mumbai | Updated on August 30, 2021

Sees post-Covid increase in demand for yarns from home textiles and technical textiles

Pioneer Embroideries, manufacturer of speciality polyester filament yarn, plans to invest ₹58 crore to enhance its capacity to 26,000 tonnes per annum by adding 8,000 tonnes.

The new manufacturing unit will come up on existing factory land and is expected to be operational by FY23.

At full utilisation the added capacity has potential to generate sales revenue of ₹110 crore through a mix of domestic sales and exports. The current capacity utilisation is 95 per cent.

Textile Ministry to send PLI scheme for Cabinet approval soon

The major equipment is being sourced from Germany-based Oerlikon Barmag Group, a known supplier of textile extrusion equipment.

For the project cost, the company will manage ₹18 crore from internal accruals and the rest through bank borrowings.

Textile stocks in top spin on Govt sops

The capacity expansion follows a post-Covid increase in demand for these yarns in newer segments such as home textiles and technical textiles.

The company is focusing on POY-based speciality textile avenues such as flame retardant, automotive, anti-microbial and value-added DTY yarn for non-apparel segments.

Harsh Vardhan Bassi, Managing Director, Pioneer Embroideries, said the increased demand from the home textile segment helped the company grow its sales in these difficult times of Covid.

The focus is to improve operating margins through a higher share of value-added products and operational efficiencies, he said.

The company currently deals in almost 1,200 shades and over 500 product variants for specific needs.

Shares of the company were flat at ₹68 on Monday.

Published on August 30, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like