Pioneer Embroideries, a manufacturer of specialty polyester filament yarn, is to invest 58 crore to increase production to 26,000 tonnes per year by adding 8,000 tonnes.
The new manufacturing unit will be built on existing factory property and will be operational by FY23.
When fully utilised, the additional capacity has the potential to produce sales income of 110 crore through a combination of domestic and overseas sales. The current capacity utilisation rate is 95%.
Pioneer Embroideries, a subsidiary of India’s largest textile manufacturer, is expanding its production capacity by 40% to meet demand for speciality yarns in newer segments such as home textiles and technical textiles. 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.
The Textile Ministry will soon submit the PLI proposal to the Cabinet for approval. The principal equipment is being supplied by the Oerlikon Barmag Group of Germany, a well-known supplier of textile extrusion machinery. The corporation would fund 18 crore of the project’s costs through internal accruals and the remainder through bank borrowings. Textile stocks are soaring as a result of government subsidies. According to Harsh Vardhan Bassi, Managing Director of Pioneer Embroideries, rising demand from the home textile category helped the company improve its sales during Covid’s difficult times. On Monday, the company’s stock was unchanged at 68.
