Lagnam Spintex announces expansion plan with Rs 218 crore

Lagnam Spintex, the manufacturer of high-quality cotton yarns in India, on Wednesday said it plans to invest Rs 218 crore for the expansion project to double its present manufacturing capacity.

The company, which is planning towards the expansion project of 41,472 spindles, expects to get an additional topline (revenue) growth of around Rs 300 crore annually after completion of the project, Lagnam Spintex said in a statement.

"After the successful completion of the proposed project at the existing facility, the production capacity of the company will rise from 35 tonnes per day to 70 tonnes per day, the capex will almost double the company's product capacity and add a new product of 'COMPACT YARN' which is seeing lot of demand in domestic as well as export market," it said.

The Bhilwara, Rajasthan-based company expect the installation of the additional capacity to be complete by April, 2024.

Lagnam Spintex Promoter and Managing Director Anand Mangal said, "We are seeing a lot of demand from our existing and new customers. Therefore, it is a right time for expansion to strengthen the company's market position by doubling our production from the current levels."

The new product mix will help in adding new customer base and bring competitive cost advantage.

The capex will be funded in 3:1 mix through debt and internal accruals.

Lagnam Spintex's total income for the financial year ended on March 31, 2021 stood at Rs 205.40 crore.