RV Kanoria, Chairman and Managing Director of Kanoria Chemicals informed media that the company has invested USD 44 million for the project till now and the figure will reach to USD 50 million as it will invest another USD 6 million in the form of working capital investment.This integrated project has a capacity of 12 million metres of denim fabric per year.
He also informed that under this project the company will buy cotton, convert it into yarn followed by various other required processes and then finally will sell the fabric ultimately to garmenters for converting into jeans and shirts and other types of garments which are made from denim.
While informing about the debt on the books, he mentioned that 20 percent investment has come from Fung Capital, a Hong Kong based group called Li & Fung. Also, the debt will be on the books of Kanoria Africa Textiles which has an equity of USD 14 million.
Kanoria said, “On full capacity, the company is expecting USD 36-37 million revenue from the new plant and the contribution margin target is 18-22 percent”.