Having begun expansion of its denim manufacturing capacity from 60 million metres to 100 million metres per annum, Ahmedabad-based Nandan Exim Limited is now set to expand its spinning capacity. After Arvind Limited, Nandan Exim, the denim arm of textile conglomerate Chiripal Group, is set to become the second largest denim maker in India post expansion.
Refusing to divulge investment details, Vedprakash Chiripal, chairman, Nandan Exim Ltd. said, "Now that we have begun expanding our denim manufacturing capacity, we are planning to consolidate our backward integration. For this we are planning to expand our spinning capacity by adding another 200,000-300,000 spindles soon."
However, for its 100 million metres per annum denim capacity expansion, the company is investing around Rs 261 crore, of which Rs 175 crore have already been tied up. Currently, in India, Arvind Limited has the largest denim fabric manufacturing capacity of 110 million metres per annum.
According to Deepak Chiripal, chief executive officer of Nandan Exim Limited, once the denim manufacturing capacity expansion is completed by 2013-14, the company would be able to peg a turnover of Rs 1,000 crore. For the current fiscal of 2012-13, Nandan Exim is expecting a turnover of Rs 750 crore.
Meanwhile, the company announced that its net profit for the second quarter of the current fiscal 2012-13 grew by six per cent at Rs 8.05 crore from Rs 7.60 crore in the corresponding period last year. The company's revenue for Q2 of FY '13, however, grew by 21 per cent at Rs 180.43 crore, up from Rs 149.10 crore in the corresponding period last year.
For the half year ended September 30, 2012, the company posted a net profit rise of 14 per cent at Rs 14.60 crore as against Rs 12.79 crore in the corresponding period previous year. In terms of revenue, Nandan Exim saw an increase of 26 per cent from Rs 280.37 crore in the corresponding half of FY 2011-12 to Rs 354.35 crore for half year ended September 30, 2012.
Commenting on the results, Vedprakash Chiripal said, "The company has once again outperformed in the Indian textile and denim industry. The company has created its own niche in the Indian market and is continuously embarking upon the opportunities in the export markets also. During first half year of FY '13 the company had an export turnover of Rs 40 crore and has export orders on hand worth Rs 50 crore for third quarter of FY '13. With the best practices followed in the company, Nandan Exim does look forward to contribute significantly to the growth of the Indian economy."
