Denim fabric maker Nandan Denim expects to increase its production capacity to 110 million metres per annum by the next quarter.
Nandan Denim Ltd (NDL) has a denim production capacity of 71 million metres per annum, at present.
"We are expanding our capacity further to reach 110 million metres by Q1 of FY17 to become the country's largest denim producer," Nandam Denim President Govind Sharda told PTI here.
The Ahmedabad-based company has earmarked a capacity expansion plan to strengthen its domestic market share, expand exports business and have an increased focus on value-added segments.
"Out of total capital outlay of Rs 612 crore for expansion, we have already spent Rs 400 crore and remaining Rs 212 will be spent in next 4-5 months," Sharda said, adding that expansion programme was funded through debt of Rs 430 crore and internal accruals of Rs 180 crore.
Besides, denim fabric capacity, the company is also expanding spinning and shirting segments. The company is increasing spinning capacity from 54 tonnes per day to 124 TPD and yarn dyeing shirting capacity to 10 million metres.
"Our target audience are international and domestic brands. To achieve our target, we have undertaken product development to make popular variety of denim that will attract the mass. Of our total denim production 50 per cent is pure cotton denim, while 50 per cent is a blend with man-made fibre," he said.
There is a lot of opportunity in fabric business both in India and overseas market. After commissioning of the expansion, our exports will contribute about 30 per cent of the overall business in two years. The company exports denim fabric to over 28 countries, he said.
The BSE-listed NDL commenced operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. It manufactures denims, cotton fabrics and khakis.
The company which is also registered on NSE hopes to register a turnover of around Rs 1,300-1,400 crore in financial year 2016-17, he added.
