Pioneer Embroidery Limited.’s shares were up by 1.33 per cent after the company initiated commercial production of Embroidery and Laces (EL) at its plant located at Shree Ganesh Integrated Textile Park (SGITPL), Degaon-Dhule in Maharashtra.

The Degaon unit is now equipped with 8 advanced, computerised machines imported from Lasser AG, Switzerland, marking the implementation of the company’s second-phase business strategy. In August 2022, PEL divested its production unit in Coimbatore, including 14 smaller, low-speed machines. The investment in the Degaon facility aimed to streamline embroidery production, modernize equipment to reduce labour costs and enhance overall efficiencies to stay competitive.

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The company is poised to bolster its turnover in the coming months, capitalising on festival demand and export orders. In FY2023, the Embroidery and Laces (EL) business exhibited demand recovery in both domestic and international markets, achieving a turnover of Rs. 4,582 lakh, a notable 14.21 per cent increase from the previous year’s Rs. 4,012 lakh.

The total investment in the Degaon plant and equipment amounts to approximately Rs. 41 crore, with the building leased from SGITPL. At peak utilization, the new unit is projected to achieve a turnover of about Rs. 50 crore. The building premises and support infrastructure are well-positioned for further capacity expansion.

PEL also holds a lead promoter position in the Shree Ganesh Integrated Textile Park (SGITPL), having separately invested Rs. 10.56 crore for a 33.2 per cent stake.

The shares were up by 1.33 per cent to Rs. 50.16 at 10.57 a.m. on the BSE.