Nitin Spinners, a manufacturer of cotton and blended yarns, knitted fabrics, greige and finished woven fabrics at its board meeting, has approved capacity expansion at a total project cost of Rs 950 crore.
The expansion is targeted to be completed over next 20 months period with an aim to strengthen the company's market position and capture the benefit of growing market opportunity in international as well as domestic markets.
The capacity expansion will happen across all the segments i.e spinning, knitting, weaving and finishing, at the existing plant locations.
The proposed capacity addition includes 1,51,000 equivalent spindles thereby increasing the total production capacity from 75,000 tpa to 1,10,000 tpa; addition of knitted fabrics 2,500 tpa capacity thereby increasing the total production capacity from 9,500 tpa to 11,000 tpa; and fabrics addition of 10 million mtr pa thereby increasing the production capacity from 30 million mtr pa to 40 million mtr pa.
Capital Expenditure will be funded through combination of term loan and internal accruals and the same is eligible for interest subsidy and other benefits under Rajasthan Investment Promotion Scheme.