As one of the largest global home textile bed linen manufacturers, the capex will add 68,000 spindles
Indo Count has announced fresh investments to enhance spinning capacity at its subsidiary Pranavaditya Spinning Mills. The proposed capex will be towards additional spinning capacity of 68,000 spindles for value-added specialised yarn. In the first phase the company will invest Rs 98 crore for adding 24,192 spindles which is expected to be operational by December 2022. In the second phase Indo Count will be investing Rs 172 crore, adding 43,776 spindles, which is expected to be operational by March 2023. The total capex of Rs 270 crore will be funded through a mix of internal accruals of Rs 95 crore and debt of Rs 175 crore.
Indo Count is one of the largest global home textile bed linen manufacturers. Executive Chairman Anil Kumar Jain has been ranked 10th amongst India’s Top 100 CEO’s 2017 by Business Today. Under his leadership, the company has focused on some of the world’s finest fashion, institutional and utility bedding and sheets and has built significant presence across the globe. Over the years, the company has successfully carved out a niche for itself and has become a total bedding resource. The company’s current annual capacity is 135 million metres.
Indo Count clocked revenues of Rs 2,982 crore in FY22, growth of 17% YoY. Commenting on the results, Jain said, “We delivered growth despite the pandemic-related impact, geopolitical disruptions, rising inflation, supply chain challenges, and peak raw material prices. During the year, we acquired the GHCL home textile business, propelling us to become the largest global bed linen manufacturer. Even though the industry is facing unusual hurdles, we remain optimistic about the Indian home textile industry’s future growth prospects.”
Despite logistical and supply chain-related challenges and high inflation affecting discretionary purchases, the company was able to meet its FY22 volume guidance of 75 million metres. FY22 sales volume was 75.8 million metres. Indo Count focused on moving towards B2C and D2C segment through high-quality product offerings across varied price points, building visibility through digital campaigns and leveraging omnichannel and e-commerce distribution. The company also focused on brand promotion in the US, the UK, the Middle East and India through 10 active brands.
Innovation and technological capabilities along with licensed brands, patents and trademarks will further strengthen brand offerings. Indo Count has recently completed the modernisation of its spinning capacity with compact spinning technology. The company has increased its home textile capacity from 90 million metres to 108 million metres which will be operational by the third quarter of FY23 when the ETP and RO facilities and balancing utilities equipment are installed. Indo Count is also adding required capacity in its cut and sew unit and additional ‘top of the bed’ (TOB) unit. These capacities will be operational in the second half of FY23.