Pioneer Embroideries Ltd Sells Land and Building of its Naroli Embroidery unit

Pioneer Embroideries Limited (PEL), one of the key players in the Embroidery & Laces (EL) business in India and owner of brand "HAKOBA", is selling its factory Land and Building of manufacturing unit at Naroli for an amount of Rs.702 lakhs.

The entire proceeds from sale of factory land and building shall be used to reduce its term liabilities, which will also help in lowering the interest burden on the Company.

Naroli unit generated sales of about Rs.617 lakhs in current year and it has insignificant share in overall sales and profitability of the Company. As the Company has pending embroideries orders in hand, it will enter into a leave and license agreement with the Buyer for a portion of the facilities retained for manufacturing use therein to sustain specific business obligations. Pioneer has already moved most of its embroidery manufacturing to its recently set up, state-of-the-art unit for Embroideries and Laces at Shree Ganesh Integrated Textile Park, Degoan, Dhule in Maharashtra. The reorganising and reduction in operations at Naroli unit is in line with the Company's stated objective of consolidating and modernizing its embroidery business at Degaon.

Shares of Pioneer Embroideries Limited was last trading in BSE at Rs. 37.52 as compared to the previous close of Rs. 39.50. The total number of shares traded during the day was 95653 in over 109 trades.

The stock hit an intraday high of Rs. 39.00 and intraday low of 36.00. The net turnover during the day was Rs. 3564065.00.

Source : Equity Bulls

Keywords

PioneerEmbroideries INE156C01018 LandSale