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El Nasr seeks financial assistance for restructuring
27 Sep '10
2 min read
The Egyptian knitwear company – El Nasr Clothes & Textiles, which manufactures textiles for business clients like Marks & Spencer Group Plc, is looking for financial assistance for the purpose of restructuring the company. It has also planned to export clothing to the US.
The company is planning to raise funds either from the sale of the company's assets, addition of capital or a loan. The decision will be taken by the board. The proposal for restructuring the company and investment needed to upgrade the machines will be put forward at the next board meeting which is going to be held on 28th September.
El Nasr machines have not been upgraded in last 10 years. This has led to added expenditure on production of fabrics, as a lot of waste is generated. Currently, most of the machines are running at 50 to 60 percent of their production capacity, which is expected to increase up to 70 percent by January. The company's capacity, for knitting as well as dyeing, is 15 tons per day.
As a result of better management, the company's sales are expected to rise, by 15 percent to 180 million Egyptian pounds (US $31.5 million) in the current fiscal year which ends on June 2011.
But the amount to be raised for investment has not been disclosed by the company.
El Nasr, also recognized as Kabo, is entitled to ship textiles to the US under a contract that focuses on using Israeli components. The company will exploit the Qualified Industrial Zone (QIZ) in Egypt.
Exports of apparels to US from Egypt have increased two-folds since 2005. It was around the same time when US had permitted the products, duty-free entry into its market, manufactured from Israeli raw materials and produced in the QIZ of Egypt.
The company is planning to raise funds either from the sale of the company's assets, addition of capital or a loan. The decision will be taken by the board. The proposal for restructuring the company and investment needed to upgrade the machines will be put forward at the next board meeting which is going to be held on 28th September.
El Nasr machines have not been upgraded in last 10 years. This has led to added expenditure on production of fabrics, as a lot of waste is generated. Currently, most of the machines are running at 50 to 60 percent of their production capacity, which is expected to increase up to 70 percent by January. The company's capacity, for knitting as well as dyeing, is 15 tons per day.
As a result of better management, the company's sales are expected to rise, by 15 percent to 180 million Egyptian pounds (US $31.5 million) in the current fiscal year which ends on June 2011.
But the amount to be raised for investment has not been disclosed by the company.
El Nasr, also recognized as Kabo, is entitled to ship textiles to the US under a contract that focuses on using Israeli components. The company will exploit the Qualified Industrial Zone (QIZ) in Egypt.
Exports of apparels to US from Egypt have increased two-folds since 2005. It was around the same time when US had permitted the products, duty-free entry into its market, manufactured from Israeli raw materials and produced in the QIZ of Egypt.
Fibre2fashion News Desk-India
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