Indo Count Plans Brownfield Expansion/Modernization of existing capacities with capex of Rs. 200 crores

India, 18th March 2021 (GNI): Indo Count Industries Ltd., one of India’s largest Home Textile manufacturer, today announced that the Project Management Committee of the Board of Directors of the Company has approved expansion of its bed linen capacity by ~ 20% from its existing annual capacity of 90 Mn meters to 108 Mn meters by debottlenecking and balancing its facilities. Further, it proposes to make a brownfield investment for adding commensurate cut & sew facilities and for enhancing the capacity for Top of the Bed (TOB) products. This will entail a capex of    ~ Rs. 150 crores.

The existing spinning unit of the Company will also be modernized with compact spinning technology. This will entail a capex of ~ Rs. 50 crores. Post modernization, this capacity will also be used for captive consumption in the home textiles unit.

These investments are expected to increase the revenue by ~Rs. 600 crores over the next 2 years, post commissioning. The total capex will be ~ Rs. 200 crores and will be funded by a mix of internal accruals and debt and is expected to be operational in H2 of FY 2022.

Commenting on the above, Mr. Anil Kumar Jain, Executive Chairman of Indo Count Industries said, “These investments will lay foundation for the next phase of growth for the Company. The investment in modernization and technological upgradation will further enhance our product offering capabilities to our customers and grow the market share of the Company in bedding products category”, stated in the press release.

About Indo Count Industries Ltd, (ICIL), is one of India’s largest Home Textile manufacturer. Mr. Anil Kumar Jain, Executive Chairman, has been ranked 10th amongst the India’s Best Top 100 CEO’s 2017 by Business Today. Under his leadership, the Company has focused on some of the world’s finest fashion, institutional and utility bedding & sheets and has built significant presence across the globe. Over the years, the Company has successfully carved out a niche for itself and has become a total bedding resource. The company’s annual capacity is 90 million meters.

CARE’s credit rating is CARE A+ (Single A Plus; Outlook: Stable) for Company’s Long-Term Bank Facilities and CARE A1 (Single A One) for Short Term Bank Facilities. ICRA’s credit rating is ICRA A+ (Single A plus; Outlook Positive) for Company’s Long-Term Bank Facilities and ICRA A1+ (A one plus) for Short Term Bank facilities.

Safe Harbor Statement: Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.ends

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