Nandan Denim Ltd. (NDL) has plans to raise its production capacity to 110 million metres per annum by the next quarter from the current 71 million metres.
“We are expanding our capacity further to reach 110 million metres by Q1 of FY17 to become the country’s largest denim producer,” the NDL President, Mr. Govind Sharda, told PTI.
The Ahmedabad-based company has worked out 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 crores for expansion, we have already spent Rs. 400 crores and the remaining Rs. 212 will be spent in next 4-5 months,” Mr. Sharda said, adding that the expansion programme is funded through debt of Rs. 430 crores and internal accruals of Rs. 180 crores.
Besides denim fabric capacity, the company is also expanding spinning and shirting segments. It is increasing spinning capacity from 54 tonnes per day to 124 TPD and yarn dyeing shirting capacity to 10 million metres.
There is a lot of opportunity in fabric business both in India and the overseas market. After commissioning of the expansion project, the company exports will contribute about 30 per cent of the overall business in two years. The company exports denim fabrics to nearly 30 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 achieve a turnover of Rs. 1,300-1,400 crores in 2016-17, Mr. Sharda added.