Further, the company plans to add 2nd denim line with 10 Mn Mtr per annum capacity which will commence at the start of H2FY23. The company currently has 8 existing denim lines with an annual capacity of 80 Mn Mtr per annum. With these additional 2 lines, annual capacity will increase to 100 Mn Mtr per annum at Dholi Unit.
These investments are expected to increase the revenue by ~Rs. 160 crore/per line considering the full year of operation.
The total capex will be ~ Rs. 30 crore and will be funded by internal accruals. The capex for these lines directly ramps up production of Denim Fabric without incurring any additional capex for any other process/machinery. With these two additional new lines, the company will be able to cater to domestic and export demand for Denim fabric.
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