Indo Count Industries announced its the board of directors has approved expansion of its bed linen capacity by about 20% from its existing annual capacity of 90 Mn meters by debottlenecking and balancing its facilities.
Further, it proposes 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 about Rs. 150 crore. The total capex will be about Rs. 200 crores and will be funded by a mix of internal accruals and debt and is expected to be operational in H2 of FY 2022.
The existing spinning unit of the company will also be modernized with compact spinning technology. This will entail a capex of about 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 about Rs. 600 crores over the next 2 years, post commissioning.
Anil Kumar Jain, Executive Chairman of Indo Count Industries said, the investment in modernization and technological upgradation will further enhance the company's product offering capabilities to customers and grow the market share of the company in bedding products category.
The announcement was made after market hours yesterday, 18 March 2021. Shares of Indo Count Industries fell 3.8% to settle at Rs 113.80 yesterday.
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Indo Count Industries is one of India's largest Home Textile manufacturer.
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