Pioneer Embroideries (PEL), an owner of brand SILKOLITE in specialty polyester filament yarn (SPFY), is planning capacity expansion to fulfill the increasing demand for SPFY.
PEL has planned this expansion as during the pandemic it experienced growth in newer segments like home textiles and technical textiles.
The current expansion is in partially oriented yarn (POY) and draw textured yarn (DTY) segment.
The company is aggressively focusing on POY-based speciality textile avenues such as flame retardant, automotive, antimicrobial and value-added DTY yarn for non-apparel segments.
The total project cost is Rs 58 crore, of which Rs 18 crore will be from internal accruals and the balance will be funded through bank borrowings. The project is expected to be completed in four to five quarters and the new capacity will be fully operational by Q4/FY23.
The major equipment is being sourced from Germany-based OerlikonBarmag Group, a world-renowned supplier of quality textile extrusion equipment.
The company is currently majorly into fully drawn yarn (FDY) as well as partially oriented yarn (POY) and its value-added versions like air textured yarns, cabled yarns, twisted yarns and textured cabled & heat set yarns.
The current capacity utilisation is around 95 percent. The new capacity, when added, will have a sales potential of Rs 100 to 110 crore at full utilisation with a mix of domestic and exports.
PEL has a wide distribution network in both domestic and export markets, and plans to export about 25 percent of its produce.