Pioneer Embroideries of India will invest Rs. 58 crores in specialty yarns

1st Sep 2021, Mumbai:

Pioneer Embroideries, a Mumbai-based manufacturer of specialty polyester filament yarn, aims to invest Rs. 58 crores to increase its production to 26,000 tonnes per year by adding 8,000 tonnes.

Internal accruals will account for Rs. 18 crores, while bank borrowings would account for the balance. After Covid, demand for these yarns increased in newer categories such as home textiles and technical textiles, prompting the capacity expansion. 

According to the company's MD, Harsh Vardhan Bassi, rising demand from the home textile category has helped the company improve sales during these challenging COVID-19 times. The objective is to improve operating profits through a bigger percentage of value-added products and operational improvements. The new facility, which will be built on the existing manufacturing site, is slated to open in FY23. At full capacity, the additional capacity has the potential to generate Rs. 110 crore in sales revenue from a mix of domestic and overseas sales. Currently, 95% of the capacity is being used. For non-apparel categories, the company is working on POY-based specialty textile routes such as flame retardant, automotive, anti-microbial, and value-added DTY yarn.

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