KARACHI: 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.
In a regulatory filing with the Pakistan Stock Exchange on Thursday, 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.”
Civil works have a capital outlay of $100 million, the company said.
It has arranged long-term financing of Rs5 billion while the rest will be financed by internal cash generation.
“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”.
The share price of Interloop Ltd increased 3.87 per cent to Rs76.71 on the stock exchange.
Its earnings for the October-December quarter rose 33.2pc to Rs2bn on a year-on-year basis.
Published in Dawn, February 4th, 2022
