Pacific Cotspin eyes gains from high-value yarn exports
17 Mar '06
2 min read
Pacific Cotspin, the Kolkata company with Rs 135 crore turnover is eyeing high-value cotton yarn to boost its export earnings.
A 100 percent export-oriented company, it plans to invest Rs 70 crores to produce premium-grade compact yarns.
Compact yarn has low hairiness, high evenness and high elastic property while still being superior to conventional cotton.
100 percent pure cotton yarn is very much in demand to produce top end woven and knitted garments in Europe and the US.
Now, the demand has shifted from cotton carded yarn to combed yarn in developed countries.
In the combed yarn category, compact yarn will rule the roost in future, industry sources claim.
Pacific Cotspin intends to capitalize on this opportunity by setting up a separate production facility to tap yarn growing market in Europe and the US, informs Ashok Mehra, Chairman, Pacific Cotspin.
The company needs to invest about Rs 70 crore to produce 15 tons of compact yarn per day as its existing facility will be modified to incorporate a separate production line.
Some 25,200 spindles will be installed to spin the combed yarn which is expected to be produced commercially by March '07.
Investment will be a mix of debt and internal accruals on a 50:50 basis, he stated.
The company will borrow Rs 35 crore, with West Bengal Industrial Development Corporation already sanctioning Rs 18 crore worth of loans and discussions for another Rs 17 crore loan in progress with several banks.
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