Business

Pioneer Embroideries Plans Rs 58 Crore Capex

Pioneer Embroideries, manufacturer of speciality polyester filament yarn, plans to invest Rs 58 crore to enhance its capacity to 26,000 tonnes per annum by adding 8,000 tonnes. The new manufacturing unit will come up on existing factory land and is expected to be operational by FY23. At full utilisation the added capacity has potential to generate sales revenue of Rs 110 crore through a mix of domestic sales and exports. The current capacity utilisation is 95%. The major equipment is being sourced from Germany-based Oerlikon Barmag Group, a known supplier of textile extrusion equipment. For the project cost, the company will manage Rs 18 crore from internal accruals and the rest through bank borrowings.The company is focusing on POY-based speciality textile avenues such as flame retardant, automotive, anti-microbial and value-added DTY yarn for non-apparel segments. Harsh Vardhan Bassi, Managing Director, Pioneer Embroideries, said the increased demand from the home textile segment helped the company grow its sales in these difficult times. The focus is to improve operating margins through a higher share of value-added products and operational efficiencies, he said. The company currently deals in almost 1,200 shades and over 500 product variants for specific needs.