Indo Count Industries Ltd., one of India’s largest Home Textile manufacturer, will be expanding of its bed linen capacity by 20% from its existing annual capacity of 90 Mn meters to 108 Mn meters by debottlenecking and balancing its facilities. Further, it plans to make a brownfield investment for adding commensurate cut & sew facilities and for enhancing the capacity for Top of the Bed (TOB) products. This will entail a capex of Rs. 150 crores.
The existing spinning unit of the Company will also be modernized with compact spinning technology. This will entail a capex of Rs. 50 crores. Post modernization, this capacity will also be used for captive consumption in the home textiles unit. These investments are expected to increase the revenue by Rs. 600 crores over the next 2 years, post commissioning.
Commenting on the above, Mr. Anil Kumar Jain, Executive Chairman of Indo Count Industries said, “These investments will lay foundation for the next phase of growth for the Company. The investment in modernization and technological upgradation will further enhance our product offering capabilities to our customers and grow the market share of the Company in bedding products category.”
The total capex will be Rs. 200 crores and will be funded by a mix of internal accruals and debt. Increased capacity is expected to be operational in H2 of FY 2022.
The company had achieved quarterly volume of 20 million sq mtrs during the third quarter and is expected to repeat the performance in the fourth quarter as well. With its current annual capacity of 90 million meters and also with the consistent quarterly rate of production of 20 plus million meters coupled with company’s long-term growth outlook, proposed capacity addition may enable the company to expand its market share in the coming quarters.