Pioneer Embroideries hits record high as expansion in Specialty Polyester Filament Yarn Capacity remains on course
India Infoline News Service |
30 Dec, 2021 |
Pioneer Embroideries Limited (PEL), one of the key players and owners of brand â€œSILKOLITEâ€ in Specialty Polyester Filament Yarn (SPFY), is moving ahead with its expansion project in SPFY as per schedule.
The company stock was in demand during early trade on Thursday. At around 9.35 am, Pioneer Embroideries Ltd was trading at Rs69.20 per piece up by Rs2.85 or 4.3% from its previous closing of Rs66.35 per piece on the BSE.
The scrip opened at Rs69.80 and has touched a fresh 52-week high of Rs79.60 per piece on Thursday.
The company said in a filing on Wednesday that it has already placed the order for major equipment with a Germany-based manufacturer of quality textile extrusion equipment, along with advance payments, which would enable it to secure delivery by Q3FY23. The equipment is being primarily financed through a German Bank.
Construction work on the land adjoining the companyâ€™s existing manufacturing plant at Kala Amb, Himachal Pradesh, is progressing well, with the foundation work already completed.
The company has till date incurred capital expenditure of over Rs750 lac, presently funded through internal accruals, and is negotiating financial closure with its lenders.
As communicated earlier, with this expansion, PEL plans to improve its presence in newer segments like home textiles and technical textiles, and would be primarily manufacturing POY (Partially Oriented Yarn) and DTY (Draw Textured Yarn)-based speciality textile products. These products, non-apparel in nature, have buoyant demand in both domestic and international markets.
The SPFY business contributes close to 90% of PELâ€™s turnover, and in the first half of the current year, the business clocked revenues of approximately INR 12,740 lac, up from about Rs6,970 lac in the previous corresponding period. As the average capacity utilisation is high, proposed increase in capacity should result in enhanced turnover without a major time lag.