Bhandari Hosiery Exports to set up new line of fabric manufacturing

Ludhiana-based Bhandari Hosiery Exports (BHE) plans to set up a new line of multi faceted fabric manufacturing units at its existing location to support its future growth in textile production business.

Focusing largely on exports of garments with expertise in T-shirt, BHE plans to expand its presence in Europe and the United States that contribute around 70% of annual sales.

The company plans to spend Rs 12-15 crore this year after Rs 22 crore spent to create similar capacity during the last financial year.

"We are gradually strengthening our backward integration business which will ultimately support our core business of textile manufacturing. Textile is a high labour and low capital intensive business. Hence, the accumulative investment on our new facility is estimated at Rs 12 crore," said Nitin Bhandari, chairman and managing director, BHE.

After fully implementation of this plant by 2015-16, BHE's fabric manufacturing capacity would go up to 10 tonnes per day from the existing 4 tonnes per day. Its garments manufacturing capacity stands currently at around 10,000 pieces per day.

The company owns 12 acre of land in Ludiana at its existing location of which 5 acres have been dedicated for poplar plants.

Selling largely, through retail business houses both in India and overseas, the company plans to strengthen its presence through domestic business-to-business (B2B) sales. Domestic markets contribute nearly 30 per cent of its annual sales. Its existing clients include Big Bazar, Reliance among others.

BHE posted total income of Rs 124.96 crore for the financial year 2014-15 as against Rs 111.46 crore reported in the previous year. Net profit of the company, however, slumped to Rs 0.64 crore for 2014-15 from Rs 1.97 crore in the previous year.

The company's share price closed with a gain of around 1 per cent at Rs 46 apiece on Tuesday.

 

 

 

 

 

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