By the next quarter, Nandan Denim (NDL) plans to raise its production capacity to 110 million meters per annum from the current 71 million meters. According to Govind Sharda, NDL President, the company is expanding capacity further to reach 110 million meters by Q1 of FY17 to become the country’s largest denim producer.
The Ahmedabad-based company has worked out a capacity expansion plan to strengthen its domestic market share, expand exports business and have an increased focus on value-added segments. Out of total capital outlay of Rs 612 crores for expansion, they have already spent Rs 400 crores and the remaining Rs 212 crores will be spent in next 4-5 months. Sharda added that the expansion programme is funded through debt of Rs 430 crores and internal accruals of Rs 180 crores.
Besides denim fabric capacity, the company is also expanding spinning and shirting segments. It is increasing spinning capacity from 54 tonnes per day to 124 TPD and yarn dyeing shirting capacity to 10 million metres.