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Nitin Spinners Limited, one of the leading manufacturers of cotton and Blended Yarns, Knitted Fabrics, Greige and Finished woven Fabrics at its board meeting held today approved capacity expansion at a total project cost of Rs. 950 crores. The expansion is targeted to be completed over next 20 months period with an aim to strengthen companys market position and capture the benefit of growing market opportunity in international as well as domestic markets.
Expansion Project Details:
Capacity expansion shall happen across all the segments i.e., Spinning, Knitting, Weaving and Finishing, at the existing plant locations.
Proposed Capacity Addition:
Spinning: Addition of 1,51,000 equivalent spindles thereby increasing the total production capacity from 75,000 TPA to 1,10,000 TPA
Knitted Fabrics: Addition of 2,500 TPA capacity thereby increasing the total production capacity from 9500 TPA to 11,000 TPA
Woven Fabrics: Addition of 10 million Mtrs/PA thereby increasing the production capacity from 30 million Mtrs/PA to 40 million Mtrs/PA
Capital Expenditure will be funded through combination of Term Loan and internal accruals and the same is eligible for Interest Subsidy and other benefits under Rajasthan Investment Promotion Scheme(RIPS)
Commenting on the expansion plans Mr. Dinesh Notkha, Managing Director, Nitin spinners timited said, "This capacity expansion shall enhance our base and widen the product portfolio to enable us to cater diverse requirements of customers. Currently we are running at more than 95% capacity in spinning segment and more than 85% capacity at Knitted Fabrics and Woven Fabrics segment. We aim to meet our existing demand smoothly and take advantge of growing market. We will also increase our presence in manmade blended Yarns and fabrics.
The expansion will be on brownfield basis at the existing locations with small piece of land acquisition adjacent to existing plant. This will result into benefit of competitive cost advantage and economies of scale. The Indian cotton industry is well poised to take advantage of improving demand across the globe and China + 1 supply chain strategy adopted by Global majors. Our track record and strong relationships with Global and domestic customers backed by the announced capacity expansion will further strengthen our position in the marketplace." |
