Hikes denim capacity and forays into shirting
Nandan Exim Ltd., the flagship company of the Ahmedabad-based Chiripal Group, has forayed into new ERA of shirting production and proposes to expand its denim capacity in order to grab the opportunity of growing demand in domestic and international markets and to compete and diversify its activities. Nandan Exim is the second largest integrated denim manufacturing firm in India.
The Nandan Exim Chairman, Mr. Vedprakash Chiripal, said the company has enhanced its expansion project to Rs. 814 crores, as increased from Rs. 261 crores announced earlier. The company proposes an additional capacity of 42 million metres per annum denim fabrics, inclusive of installation of spinning of 8 open end lines, 57,840 spindles and 336 looms. It also proposes to diversify into new ERA of 15 million metres per annum shirting capacity.
According to him, the post-expansion capacity of the company would be 112 million metres per annum denim fabrics and 15 million metres shirting capacity. The project is expected to be completed by January 2015, generating direct employment to more than 750 personnel.
Mr. Chiripal further said that the total revenue for the nine-month period ended December 2012 has increased to Rs. 536 crores as compared to Rs. 425 crores in the corresponding nine months ended December 2011, registering a rise of 26 per cent. Net profit for the nine months was Rs. 21.72 crores (Rs. 16.06 crores).
The group has a vision of future growth through diversification in order to survive in a highly competitive environment. This is supported with quality products manufactured by the company along with fully integrated textile plant to cater to the needs of customers by providing a variety of products under one roof.
Gujarat remains one of the richest producers of cotton in India. Elaborating on the need for raw materials, Mr. Chiripal said that company has a sophisticated and advanced cotton spinning plant for its own requirement of cotton yarn in line with its expansion project.
Looking at the excellent performance posted by the company along with the growth in demand in international and domestic markets, with the cut in production volume by China and the US and the announcement of the scheme for the textile sector by the Gujarat Government wherein 5-7 per cent interest subsidy and VAT refund to the extent of investment in plant & machinery and Re.1/- per unit power subsidy, the denim players in India have indeed a bright future. As for Nandan Exim, the Chairman expects a turnover of Rs. 1,500 crores, post expansion.