After denim, Nandan Exim now plans expansion in spinning

Will expand spinning capacity by adding another 200,000-300,000 spindles soon

Having begun the expansion of its denim manufacturing capacity from 60 million metres to 100 million metres per annum, Ahmedabad-based Nandan Exim Limited is now set to expand its spinning capacity.

After Arvind Limited, Nandan Exim, the denim arm of textile conglomerate Chiripal Group, is set to become the second largest denim maker in India post expansion.

Refusing to divulge investment details, Vedprakash Chiripal, chairman, Nandan Exim Ltd said, "Now that we have begun expanding our denim manufacturing capacity, we are planning to consolidate our backward integration. For this, we are planning to expand our spinning capacity by adding another 200,000-300,000 spindles soon."

For its 100 million metres per annum denim capacity expansion, the company is investing around Rs 261 crore, of which Rs 175 crore have already been tied up.

Currently, in India, Arvind Limited has the largest denim fabric manufacturing capacity of 110 million metres per annum.

According to Deepak Chiripal, chief executive officer of Nandan Exim Limited once the denim manufacturing capacity expansion is completed by 2013-14, the company would be able to peg a turnover of Rs 1,000 crore. 

For the current fiscal of 2012-13, Nandan Exim is expecting a turnover of Rs 750 crore.

Meanwhile, the company announced that its net profit for the second quarter of the current fiscal 2012-13 grew by 6% per cent at Rs 8.05 crore from Rs 7.60 crore in the corresponding period last year. The company's revenue for Q2 of FY 13, however, grew by 21% at Rs 180.43 crore, up from Rs 149.10 crore in the corresponding period last year.