Interloop Limited intends to invest $100 million in its apparel project, primarily to increase production capacity to fulfill domestic and international demand.
According to the stock filing, the firm plans to begin civil work on an apparel project with a capital outlay of $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, as well as offering yarn dying services and producing its own electricity. The company made a profit of Rs. 2.69 billion in the first quarter of 2021-22, up to 94 percent year on year.
Interloop New Projects
As part of the firm’s Vision 2025, the company plans to expand its manufacturing facility in phases, including the establishment of a sixth hosiery plant in the next financial year 2023-24.
The new facility was supposed to be built in 2024-25, but demand for the product has continued to climb at a breakneck speed, necessitating an early start of the planned plant.
According to the stock filing, Interloop’s CEO informed the board of directors, indicating that the company’s profitability will grow significantly with the inclusion of the 6th facility, which will aid in the establishment of future projects as part of Vision 2025.
The board of directors approved the management’s request to raise funds through either overseas investments or the issuance of right shares on the stock exchange.
The company just constructed a fifth hosiery plant, which has been operating at full capacity, but consumer demand is not keeping up with the expanding demand.
In response to demand, the company has decided to build a vertically integrated knitwear plant, with building slated to begin in Q2 FY22.
It has also completed the first phase of its solar energy project at the Lahore Denim plant, with further projects in the works. In addition to expanding, it is continuing to invest in modernization and technological progress of its equipment, processes, and people.
Interloop Limited was founded in Faisalabad in 1992. 1-km, 7-km Jaranwala road, Khurrianwala, Faisalabad, and 8-km Manga Mandi, Raiwand Road, Lahore are the manufacturing facilities.
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