Indo Count modernises existing capabilities with Capex of Rs 200 crore; share reacts positively
Indo Count Industries, which is India's largest home textile manufacturer, announced on Thursday after the market hours that the management committee of the company has approved the expansion of its bed linen capacity by 20 per cent from its existing annual capacity of 90 million metres to 108 million metres.
The expansion of the capacity will be made by debottlenecking and balancing its facilities. It has also proposed to make a brownfield investment for adding commensurate cut & sew facilities and updating the capacity of top of the bed (TOB) products. This updating of capacity will involve Capex of Rs 150 crore.
The current spinning unit of the company will also be modernised with compact spinning technology, which will need Capex of Rs 50 crore. The expanded capacity will also be used for captive consumption in the home textiles unit. All in all, these investments are expected to increase the revenue for the company by Rs 600 crore over the next 2 years. Up to Rs 200 crore, the Capex will be funded by a blend of internal accruals & debt and is predicted to be operational in the second half of FY22.
Indo Count Industries is an India-based company engaged in the manufacturing of textile products. The company works as an end-to-end bedding provider and has products under categories, including bed sheets, fashion bedding, utility bedding & institutional bedding.
On Friday, the share of Indo count Industries traded at Rs 114.60, which is 0.44 per cent higher on BSE.