Stock Report

Pioneer Embroidery Ltd commences Production at its new Embroidery facility

Posted On : 2023-09-14 21:56:53( TIMEZONE : IST )

Pioneer Embroidery Ltd. (PEL), has commenced the commercial production of Embroidery and Laces (EL) at its new plant at Shree Ganesh Integrated Textile Park (SGITPL), Degaon- Dhule in Maharashtra. All the required regulatory approvals were received by end-August, 2023.

PEL has 8 computerised, high-end machines, imported from Lasser AG, Switzerland, now installed at Degaon unit, completing its second leg of the business strategy. Earlier in August 2022, PEL had disposed off its production unit at Coimbatore, including its old equipment comprising of about 14 smaller and low speed machines. Investment in the Degaon unit was made with an aim to consolidate embroidery production, modernise its equipment to cut down on associated labor costs and thus improve efficiencies to remain competitive in the market.

PEL's embroidery manufacturing capacity now stands at 2,400 mln stitches of embroideries across its Degaon, Sarigam and Naroli units, while prior to the sale of Coimbatore unit, PEL's capacity stood at 1,700 mln stitches. Bobbin laces capacity remains unchanged at 14 mln meters.

The Company is now looking to shore up its turnover in the immediate months on back of the festival demand and export orders. In the EL segment, Company already has certain advantages of established marketing presence across the country, sound networking with exporters, outsourcing capabilities, well-recognized brands in both B2B and B2C segments, extensive design library and over three decades of experience in this business. With improved manufacturing capabilities, the Company further aims to enhance its efficiency, product range and quality.

In FY2023, the Embroidery and Laces (EL) business had experienced a robust demand recovery in both domestic and international markets, achieving a turnover of ₹4,582 lakhs, a 14.21% increase from the previous year's ₹4,012 lakhs.

The total investment in the plant and equipment at Degaon has been approximately Rs. 41 cr, while the building has been taken on lease from SGITPL. At peak utilisation, the new unit can achieve a turnover of about Rs 50 cr. The building premises and support infrastructure are sufficient for further capacity expansion.

PEL is also a lead promoter in the Shree Ganesh Integrated Textile Park (SGITPL), having separately invested Rs 10.56 cr for a 33.2% stake.

Shares of Pioneer Embroideries Limited was last trading in BSE at Rs. 49.50 as compared to the previous close of Rs. 49.82. The total number of shares traded during the day was 7939 in over 267 trades.

The stock hit an intraday high of Rs. 52.00 and intraday low of 49.11. The net turnover during the day was Rs. 400410.00.