Faisalabad October 27 2021: Looking at the demand, Interloop Limited has planned to set up a vertically integrated knitwear plant, and construction work will commence during Q2 FY22 as per information shared by the company with investors.
Expanding further into the Apparel segment, Interloop established its Knitwear Apparel Business in 2019 as a cut & sew pilot project, which is now backed by a modern dye house launched in August 2021. With a dyeing capacity of 10 tons per day, this dye house brings the fabric dyeing and finishing operations in-house, while the value added services are expanded to knitting, printing, and embroidery. By Dec 2021, it will become a fully vertically integrated Knitwear Apparel facility equipped with in-house knitting, dyeing, cutting, embellishment, and sewing capabilities.
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Knitwear Apparel has a production capacity of 1.2 million garments per month with a planned enhancement to 1.8 million pcs by March 2022. The product mix includes T-Shirts, Innerwear, Polo’s, Sweatshirts, Pants, Fleece Hoodies & Jackets being exported to eminent brands and retailers in USA, UK, and EU including Target, Tom Tailor, Carhartt, Ben Sherman, Katin, Russel Athletic, Penfield Original, Penguin, Elle, and Juicy Couture.
A hi-tech and fully vertically integrated Apparel Manufacturing Complex will start its operations at Interloop Apparel Park, Faisalabad in Q2 2023 with 42 tons of knitting/dyeing capacity per day, producing over 2 million garments per month.
Interloop Limited continues its investments in sustainability and first phase of solar energy project has been completed at the Lahore Denim plant and next projects are in the pipeline. The Company is continuing with its policy of investment in modernization and technological advancement of its equipment, processes and people, in addition to expansion.
The First Quarter of the year under review witnessed growth as compared with the same period last year. During the quarter (July to September 2021), your Company earned a gross profit of Rs. 5,537 million on sales of Rs. 19,330 million, compared to gross profit of Rs. 3,109 million on sales of Rs. 12,910 million for the corresponding period of previous financial year. The net profit increased by 29.97 percent to Rs. 2,690 million (EPS: Rs. 3.08 per share), compared to net profit of Rs. 1,382 million (EPS: Rs. 1.58 per share) in the corresponding period. Sales have increased by 38.82 percent. The Company was able to reap benefits of higher profit margins mainly due to increased sales over and above breakeven point. The Management continued to focus on profitable avenues, maximizing efficiency in production activities and cost realization through various means.