Interloop Limited (ILP) has announced significant capacity expansions, particularly in its hosiery segment, with the installation and commissioning of Hosiery Plant 6 by the first quarter of FY2026. This expansion will add 1,584 knitting machines, increasing capacity by 25%. The total approved investment for Plant 6 is $58 million, as reported to the main bourse on Wednesday.
The Board of Directors has also approved the Annual Budget for the Fiscal Year 2024-25, amidst other items. The export sales target for FY25 has been set at $670.80 million.
In addition to the hosiery expansion, the Board has approved several other capital expenditures across various business segments:
- Denim Expansion: An investment of $18.8 million has been approved for the commissioning of an additional 20 lines in the denim segment by the fourth quarter of FY2026. This expansion, phased over two years, will increase the capacity to approximately 18 million garments per year.
- Dyed Yarn Capacity: To meet the growing demand for dyed yarn, ILP will expand its in-house spun yarn dyeing capacity by 20 metric tons to 28 metric tons. The total capital outlay for this expansion is approved at $13.2 million, with the plant expected to be operational by the first quarter of FY2026.
- Solar Generation: In an effort to reduce greenhouse gas emissions and enhance sustainability, ILP has approved an additional 4MW capacity to its solar generation. This investment, costing $2.1 million, will be commissioned by the third quarter of FY2025, increasing ILP’s green energy generation capacity to 16.6MW.
At the time of the announcement, ILP’s stock was trading at Rs. 71.33, down 0.21 percent or Rs. 0.15, with a turnover of 1.5 million shares.
These strategic expansions reflect ILP’s commitment to meeting increasing market demands while prioritizing sustainability and operational efficiency. The enhancements across various segments are poised to strengthen ILP’s market position and contribute to its long-term growth objectives.