Faisalabad January 17 2022: In second phase of Denim expansion, Interloop Limited is planning to enhance the capacity to 40,000 units per day. The project is completed in terms of infrastructure since nearly 83 percent of the budget has already been consumed.
The management is striving to bring the first phase into profit before going in to second phase of the Denim Project, according to company’s shared progress report.
Company has successfully completed first phase of the project by installing capacity of 20,000 units per day. The project started its commercial operation since Second Quarter FY2020. However, the project is gradually making its place in European and North American markets.
Denim project cost has been enhanced to PKR 8.325 billion from initial estimate of PKR 6.75 billion for Denim project due to the devaluation in PKR and trial run losses. The increase in cost will be financed by internal cash generation. So far an amount of PKR 6.8 billion has been spent on the project which accounts for 83 percent of the allocated budget.
The denim division is located at 8 km Manga Raiwind Road, Lahore and has been functional since November 2019 as originally planned. Building & Infrastructure for the entire project is fully completed.
Hosiery plant (Division V) in Faisalabad is successfully commissioned and installed all 1,200 machines as per plan. Infrastructure and building related works are also completed. Now plant V, a sock knitting unit, is fully operational.
The management is confident that this plant will gradually achieve further efficiencies and contributes towards profitability of the company.
