Mumbai-based leading manufacturer of speciality polyester filament yarn Pioneer Embroideries has plans to invest Rs. 58 crore to enhance its capacity to 26,000 tonnes per annum by adding 8,000 tonnes.
The company will manage Rs. 18 crore from internal accruals and the rest through bank borrowings.
The capacity expansion follows a post-Covid increase in demand for these yarns in newer segments such as home textiles and technical textiles.
Harsh Vardhan Bassi, MD of the company, says the increased demand from the home textile segment has helped the company grow its sales in these difficult times of COVID-19. The focus is to improve operating margins through a higher share of value-added products and operational efficiencies.
The new facility is expected to be operational by FY23 and will come up on existing factory land.
At full utilisation, the added capacity has the potential to generate sales revenue of Rs. 110 crore through a mix of domestic sales and exports. The current capacity utilisation is 95 per cent.
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.