Textile Company Interloop Limited (ILP) plans to invest $300 million to expand its production capacity and install apparel factory to capture the pent-up demand in foreign markets.
As per The News, ILP is Pakistan’s leading textile player, has an immense growth potential as it has continuously expanded and diversified its product line. Nearly 90 percent of its revenue comes from exports where major customers in the hosiery segment include Nike, Target, Puma and Adidas.
The four clients contribute more than half of the export revenue. With the rollout of vaccination in US and European region, the demand is expected to remain resilient in the coming months. This coupled with order diversion to Pakistan from US/China trade spat and shift in orders from India and Bangladesh during pandemic will likely help ILP to achieve a sustainable growth going forward. In July-March, exports of textile and clothing grew 9.1 percent to $11.35 billion. Value-added sectors drove the growth.
The company’s e denim expansion is on track, and is expected to complete in 4QFY21. In the hosiery segment, capacity would be enhanced in a phased manner starting from September 2021 as the company is operating at maximum rated capacity.