HP Cotton Textile gains as board OKs setting up wholly-owned unit

HP Cotton Textile Mills rose 1.10% to Rs 119.10 after the company said its board has given in-principle approval to establish a wholly owned subsidiary for production linked incentive (PLI) scheme for textiles.

The board of HP Cotton Textile Mills on 7 March 2022 has also approved to make investment by way of capital and/or debentures and/or loans and/or corporate guarantees, subject to the approval of application filed under PLI scheme.

The PLI scheme is intended to promote production of MMF (man-made fibre) apparel & fabrics and technical textiles products, issued by Ministry of Textiles, Government of India.

Subsequent to the approval of application under PLI scheme, the company's board will authorize any director of the company to establish a wholly owned subsidiary and complete the necessary formalities thereof.

HP Cotton Textile Mills is one of largest exporters of cotton specialty yarns and cotton sewing threads from India. It offers an entire range of products like knitting yarns, embroidery and lace threads, patchwork and quilting threads, and sewing threads for a wide range of domestic and industrial applications.

Net profit of HP Cotton Textile Mills declined 5.13% to Rs 1.11 crore on 53.06% rise in net sales to Rs 35.71 crore in Q3 December 2021 over Q3 December 2020.

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