 "Himatsingka Seide eyes North American market with expansion of sheeting plant")
Himatsingka Seide, which is currently in process of expanding its sheeting capacity from 23 million meters per annum (MMPA) to 46 MMPA, is eyeing to tap North American countries, such as the US, Mexico and Canada, with its enhanced capacity.
The company had announced Rs 1281 crore investment plan to expand its sheeting capacity, backward integrate into spinning and foray into terry towels in phases. The company has already received an allotment letter for the required land from the government of Karnataka for the above projects. Of the total planned capex outlay, the company will invest Rs 200 crore, Rs 600 crore and Rs 400 crores for sheeting, spinning and terry towel projects, respectively.
In the first phase, it is expanding the sheeting capacity, which will be followed by commencement of construction of the spinning project. In the final phase, Himatsingka Seide will start with terry towel project.
“We are completing our sheeting project by the end of July. We are looking at commencing construction on our spinning plant no later than September 2016,” said Shrikant Himatsingka, managing director and CEO, Himatsingka Seide, during his conference call for 4Q FY 2015-16 results in May 2016.
The expansion of sheeting capacity will enable the company to make printed products, which will enhance its fashion bedding shares in the market, and also help the company to enter into the basic bedding segments where it is currently not present. With the commencement of new sheeting capacity, the company plans to channelise capacities to North America, which includes the markets of the US, Canada and Mexico, and also in the new regions.
Even for the proposed the terry towel project, Himatsingka Seide is targeting to enhance its presence in the same two markets - North America and new markets - followed by Asia.
The company had announced Rs 1281 crore investment plan to expand its sheeting capacity, backward integrate into spinning and foray into terry towels in phases. The company has already received an allotment letter for the required land from the government of Karnataka for the above projects. Of the total planned capex outlay, the company will invest Rs 200 crore, Rs 600 crore and Rs 400 crores for sheeting, spinning and terry towel projects, respectively.
In the first phase, it is expanding the sheeting capacity, which will be followed by commencement of construction of the spinning project. In the final phase, Himatsingka Seide will start with terry towel project.
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The sheeting project is likely to be commissioned by the end of July 2016, with the company envisaging placing approximately 40-50 percent of the fresh sheeting capacity by end of FY 17. The company is planning to commence construction of the spinning project, which will have installed capacity of 211584 spindles, by September 2016.
“We are completing our sheeting project by the end of July. We are looking at commencing construction on our spinning plant no later than September 2016,” said Shrikant Himatsingka, managing director and CEO, Himatsingka Seide, during his conference call for 4Q FY 2015-16 results in May 2016.
The expansion of sheeting capacity will enable the company to make printed products, which will enhance its fashion bedding shares in the market, and also help the company to enter into the basic bedding segments where it is currently not present. With the commencement of new sheeting capacity, the company plans to channelise capacities to North America, which includes the markets of the US, Canada and Mexico, and also in the new regions.
Even for the proposed the terry towel project, Himatsingka Seide is targeting to enhance its presence in the same two markets - North America and new markets - followed by Asia.