January 17, 2022 (MLN): Interloop Limited (ILP) has informed that its Hosiery Division V plant is fully operational as the company successfully commissioned and installed all 1,200 machines, according to the progress report issued by the company today to PSX.
The company said that infrastructure and building-related works have also been completed.
The management is confident that this plant will gradually achieve further efficiencies and contributes towards the profitability of the company.
With regards to the company’s Denim project, the report said that it has successfully completed the first phase of the Denim project by installing a capacity of 20,000 units per day which is gradually making its place in European and North American markets
The project started its commercial operation in the Second Quarter of FY2020.
Whereas, the company has planned to enhance installing capacity of the second phase of the Denim project to 40,000 units per day. The project is completed in terms of infrastructure since nearly 83% of the budget has already been consumed. The management is striving to bring the first phase into profit before going into the second phase of the Denim Project.
The project cost has been enhanced to PKR8.325 billion from an initial estimate of PKR6.75 billion for the Denim project due to the devaluation in PKR and trial run losses. The increase in cost will be financed by internal cash generation.
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