Pioneer Embroideries to invest Rs 30-crore on capacity expansion

Pioneer Embroideries Ltd (PEL), one of India's largest manufacturers and exporters of embroideries, torchon/bobbin laces and other garment accessories has embarked upon a major expansion at its existing plant in Himachal Pradesh at an expenditure of Rs 35 crore.

PEL, the owner of leading brand for embroidered clothing "Hakoba" plans to increase production capacity of its state-of-the-art, ultra modern dope dyed polyester yarn (DDPY) is set to be completed by January 2017. Under the plan, the company plans to set up a Greenfield production facility of polyester partially oriented yarn (POY) with 20 tonnes per day (TPD) and increase production capacity of value added products by 50 per cent to 45 TPD from its existing 30 TPD.

Consequent to the completion of the ongoing expansion, there shall be a significant increase in sales of the DDPY business. The EBIDTA margins are also expected to grow significantly as the product portfolio shall have more value-added products, the company said in a BSE filing.

It has also chalked out an strategic expansion plan to double its POY capacity and add another 20 TPD production facility of value added products in few years.

Further, Pioneer has focus on exports with its presence in key international markets including North America, Latin America, Europe, the Middle East and Africa.

The company's share price closed on Tuesday at Rs 70.60 apiece, a decline of 2 per cent from the previous day.