Interloop Ltd apprises PSX about the progress of its two major projects

October 11, 2019 (MLN): Interloop Limited has prepared a progress report regarding two of its major projects, i.e. Hosiery Division V in Faisalabad and Denim Unit in Lahore.

According to the report, the Denim Unit remains on track to deliver in October/November of this year as originally planned.

From an infrastructure perspective, all construction required to commence operations for the first phase is in place. The bulk of the machinery has been installed and is subsequently being commissioned. The ancillary areas, for instance day cares for employees’ children are being completed as per the scope of the full project.

From an operational perspective, manpower upskilling is in full-swing with the substantial portion of the manpower under training in the new facility. Production from 10 of the 12 sewing lines planned for this year is scheduled to come online in the next 6 weeks after which the last two lines will follow shortly. All ancillary machinery and processes are put in place i.e. cutting, lasers, washing and packing against this target.

Moreover, the company informed that discussions are underway with customers in the North America market. The development center, now producing above 4500 units / day, has been instrumental in generating customer interest and enabling the project to respond swiftly to customer requests.

Initially, the company allocated a budget of Rs. 6.75 billion for denim. However, it got enhanced to Rs. 7 billion due to the depreciation of local currency and some cost overruns. This is being financed through internally generated cash flows.

With regards to the Hosiery Division V project, the company informed that the production capacity, which is currently of 130 knitting machines, is being enhanced at Pilot unit. Another 50 knitting machines have been ordered and will be added into production in 3 months. The Pilot unit is enabling Interloop to meet increased customer demand and it is also serving as a training center for Plant 5 team for smooth induction at main Plant 5.

Building and infrastructure design for Plant 5 is on-going. New equipment technologies are being tested in knitting and boarding for evaluation and deployment at Plant 5. Organizational structure, functional layout and HR planning is well on course. Moreover, the planning phase of the company has been extended for a seamless transition into execution phase.

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