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Nandan Denim enhances fabric capacity

Nandan Denim’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material.

A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover.

Spinning capacity has more than doubled. This will ensure adequate availability of yarn for the company’s fabric manufacturing unit besides reducing the degree of dependence on outside suppliers of raw materials and facilitating margin accretion.

The shirting fabric facility, which handled manufacturing of grey shirting fabrics until now, has been equipped to manufacture superior variants. The average selling price per meter of the new fabric type is 60 to 400 per cent higher vis-a-vis grey shirting fabric. A new yarn dyeing plant has been commissioned to meet input requirements of the shirting fabric department. The costlier dyed yarn, in comparison to non-dyed, would consequently help the company to command a premium pricing on its shirting material, eventually causing margins to go up.

With cotton prices now stabilizing, the company can look forward to gaining some momentum in terms of its earnings. Nandan is gradually steering the business towards the value added denim category.

 
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