The expansion plan of Mumbai-based Pioneer Embroideries Limited (PEL), a leading manufacturer of Specialty Polyester Filament Yarn (SPFY), is as per schedule.
The SPFY business contributes close to 90 per cent of the company’s turnover, and in the first half of the current year, the business clocked revenues of around Rs. 127.40 crore. The company is known for embroideries, torchon/bobbin laces, raschel laces and other garment accessories.
In a filing, the company said 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. A German Bank has primarily financed the equipment.
Construction work on the land adjoining the company’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 Rs.7.50 crore, presently funded through internal accruals, and is negotiating financial closure with its lenders.
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.
