Hanil Era enters home furnishing segment

Hanil Era Textiles Ltd has announced that the company has entered the home furnishing segment comprising bed sets, curtains, table line, etc it had partially commenced fabric production at its new weaving capacity with the installation of 36 looms in September 2005. The high-speed air-jet looms, imported from Japan are the latest in its range. The looms have capability to incorporate jacquard designs. Now the second phase of expansion of weavings is complete and the Company is operating 72 Airjet looms.

The global market for home textiles is estimated at $65-70 bn with major markets being us and Europe. The global Trade in home textiles, estimated at $9 bn at present is expected to rise to $23 bn by the year 2010 with India and China emerging as the dominant players in the world. The partial commencement is part of the planned capacity of 108 looms. The balance 36 looms are expected through go on stream by Sept 2006. The total cost of Rs 620 million has been funded through a mix of internal accruals and debt under the TUF Scheme which entitles the company for a 5% interest subsidy for a period of 8 years and 10% capital subsidy on processing machines.

The Dyeing and processing is also ready and will start trial productions this months the company aim to produce 30 meters of wider width Fabric a day to be used for home furnishing.

"The commencement of the weaving & processing hurdles our entry into world furnishings market coming on back of post 2006 scenarios. The Indian trade in this segment is expected to go four fold from current level of $9bn. We are confident of growing the home furnishing business by offering differentiated products to our International Customers", Says Vishesh Agarwal, CEO.

The Company had enlarged the scope of the modernization-cum-expansion undertake at its facilities at Patalganga, by taking the weaving capacity to 108 looms, and adding a processing and dyeing capacity to the original project. This was done so as to give the Company the benefits of integration, by saving on cost.

The modernization exercise has been completed on schedule and all the spindles have been upgraded. The order book position of the company for cotton and acrylic fiber is pretty good at the moment. On the ethanol front, the Company is the largest manufacturer of Ethanol in the country with a capacity of 200 KLPD. With the change in government attitude towards the blending programme and the entry of bigger players like Reliance will help to stabilize ethanol supply to the Oil Companies. This is in term would add to the Company´ stop line this year".

Source : Equity Bulls

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