Nahar Spinning Mills (NAHARSPING) Eyes Rs 350 Cr Modernization 🧵
Hey investors! 👋 Let’s dive into some interesting news from the textile sector. Nahar Spinning Mills Limited (NAHARSPING) has announced a significant move to upgrade its operations, signaling a strong focus on efficiency and sustainability.
The company’s Board of Directors has given the green light to a comprehensive modernization plan for its spinning units across various locations. But here’s the twist: it’s not about adding new capacity in terms of more spindles. Instead, Nahar Spinning Mills is strategically replacing its older machinery, specifically the Ring Frames, with ultra-modern equipment. This smart upgrade is projected to boost overall production efficiencies by a solid 9%! 📈 That’s a big deal for a manufacturing business.
Beyond just spinning, the company is also making a stride towards greener energy by installing an 11 M.W. Solar PV System. Talk about a win-win for both operations and the environment! ☀️
So, what’s the price tag for this ambitious plan? Nahar Spinning Mills is looking at an approximate investment of Rs. 325 Crores for the spinning unit modernization and an additional Rs. 25 Crores for the solar power system, bringing the total investment to a hefty Rs. 350 Crores. This significant capital expenditure is expected to be completed by Financial Year 2027-28.
How will they fund this? The company plans to use a mix of internal accruals and term loans from banks. This approach helps manage the financial outlay effectively.
Why this move? The rationale is clear: the company aims to not only ramp up operational efficiencies but also significantly improve the quality of its products. Better quality means reduced production costs and, crucially, opens doors to diversify and increase exports to quality-conscious markets like the U.S. and the European Union. 🌍
This strategic investment highlights Nahar Spinning Mills’ commitment to staying competitive and sustainable in the evolving textile landscape. Keep an eye on how this modernization unfolds! 👀
source: Corporate Announcement
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