Textile maker Interloop Ltd has said it’s going to set up its sixth hosiery plant in 2023-24, one year ahead of the original plan, in view of “increased demand” from global customers. This would entail an investment of US$ 100 million.
In a regulatory filing with the Pakistan Stock Exchange, the company said its fifth hosiery plant recently started production and is currently operating at full capacity. “Despite the addition of plant 5, the company is unable to meet the order requirement of customers.” “By advancing hosiery plant 6, the company’s profitability will increase substantially, which will be helpful for setting up other projects as per Vision 2025,” said the regulatory filing.
The board of Interloop Ltd advised the company management to “work out possibilities of arranging new capital by either bringing in foreign investors or further issuance of shares through a right issue”.
According to a stock filing, the firm plans to begin civil work on an apparel project with a capital outlay of US$ 100 million for which the company has secured a Rs 5 billion LTTF, with the remainder funds coming from internal cash flow.
Interloop Limited manufactures and sells socks, leggings, denim, yarn, garments, and allied products, and also offers yarn dying services, while producing its own electricity. The company made a profit of Rs 2.69 billion in the first quarter of 2021-22, up by 94% year on year.