Leading denim makeRson expansion drive
Ahmedabad-based Aarvee Denims and Exports Limited (ADEL), India's second largest denim manufacturer, has decided to infuse around Rs 120 crore for expanding its manufacturing capacity in two phases.
The company currently has an installed capacity of 61.25 million meteRsper annum, which it plans to scale up to 90 million meters. The first phase of the expansion is likely to be completed by February 2011 and the second phase by December 2011.
“The final phase will be completed with the capex of Rs 120 crore approximately,” Vinod Arora, chairman, Aarvee, after the annual general meeting of the company at Ahmedabad.
Leading denim makeRsin the country have embarked on an expansion drive to meet growing demand for denim in both domestic and export markets.
Highlighting the improvement in denim markets, the company had earlier reiterated that while the domestic market was growing at 15-20 per cent, the growth in international market was also substantial.
Recently, the largest denim maker Arvind announced plans to set up a 30 million-meter denim manufacturing facility in Bangladesh. This is part of the company's strategy to enhance its production capacity to 140 million meters.
The first phase of Bangladesh plant involving capacity of 10 million meteRsis expected to be completed in the next one year.
Nandan Exim, the denim arm of Chiripal group, too, is expanding its capacity from 30 million metres per annum to 50 million metres per annum with an investment of Rs100 crore. The company has successfully completed Phase I of its capacity expansion. While the current capacity stands at 40 million metres as against 30 million metres last year, the company will be adding another 10 million meteRscapacity in the near future.
Another denim maker Jindal Worldwide Ltd is also upbeat about the denim market and has set the ball rolling for expanding its denim production capacity. Industry sources say that Jindal Worldwide is in the process of increasing its denim capacity to 35 million meteRsper annum from current 20 million meters.