Ahmedabad-based Ashima Limited is expanding its apparel manufacturing capacity massively. The vertically integrated company, currently having an existing installed capacity of 8,64,000 pieces per annum, has proposed an addition to the installed capacity which will make it 9,36,000 pieces per annum.
Once the expansion takes place, the total production capacity of the company will be 18 lakh pieces per annum.
With an investment of around Rs. 18 crore, the expansion project is expected to be completed in 6-9 months. The expansion will be in Ahmedabad and the funding will be done by internal accruals and borrowings
In a statement, the company, currently operating at 100 per cent capacity, said that the proposed brownfield expansion will enable the company to enlarge its customer base, to identify and enter new markets, to serve customers requiring larger volumes per order and to get benefit from its operational leverage.
“This expansion will contribute to the increase in top-line and overall productivity of the garment division of the company,” the statement said.
As per the website of the company, it is mainly into shirts and denim manufacturing.
