Denim fabric maker Nandan Denim expects to increase its production capacity to 110 million metres per annum by the next quarter. It has a denim production capacity of 71 million metres per annum, at present.
“We are expanding our capacity further to reach 110 million metres by Q1 of FY17 to become the country’s largest denim producer,” company president, Govind Sharda told newsmen in Mumbai.
The Ahmedabad-based company has earmarked a capacity expansion plan to strengthen its domestic market share, expand exports business and have an increased focus on value-added segments.
“Out of total capital outlay of Rs 612 crore for expansion, we have already spent Rs 400 crore and remaining Rs 212 crore will be spent in next 4-5 months,” Sharda said, adding that expansion programme was funded through debt of Rs 430 crore and internal accruals of Rs 180 crore.
The company is also expanding spinning and shirting segments. It is increasing spinning capacity from 54 tonnes per day to 124 TPD and yarn dyeing shirting capacity to 10 million metres.
“Our target audience are international and domestic brands. To achieve our target, we have undertaken product development to make popular variety of denim that will attract the mass. Of our total denim production 50 per cent is pure cotton denim, while 50 per cent is a blend with man-made fibre,” he said.
There is a lot of opportunity in fabric business both in India and overseas market. After commissioning of the expansion, our exports will contribute about 30 per cent of the overall business in two years. The company exports denim fabric to over 28 countries, he added.
