Kewal Kiran acquires land and building to setup manufacturing facilities in Daman UT

Kewal Kiran Clothing Ltd has announced that in line with the objects of the IPO the Company has completed the acquisition of land admeasuring around 53,000 sq fts and building space admeasuring about 40,000 sq fts at Somnath Road, Dabel, Daman UT.

The new facilities are expected to commence commercial production in the March 2007 and September 2007 in two parts. The said new facilities would contribute an additional of 1.3 million garments stitching and finishing capacity per annum. This would be in addition to 0.7 million garment stitching and finishing capacity contributed by expansion of existing unit at Daman. The Company is also planning to utilize the additional FSI available in the newly acquired land.

The aforesaid acquisition, when fully operational will take the total production capacity to approximately 4 million pieces per annum.

Since the new facilities acquired are adjacent to the existing facilities of the Company the Company expect to significantly improve its operational efficiencies. The existing and new facilities will be bifurcated into cutting and stitching, finishing and central warehousing facilities.

Source : Equity Bulls

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