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

Indo Count Industries Ltd., one of India's largest Home Textile manufacturer, has 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."

Shares of INDO COUNT INDUSTRIES LTD. was last trading in BSE at Rs.125 as compared to the previous close of Rs. 126.5. The total number of shares traded during the day was 41191 in over 717 trades.

The stock hit an intraday high of Rs. 128.8 and intraday low of 124.5. The net turnover during the day was Rs. 5218050.

Source : Equity Bulls

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