ILP sets USD 670.80mn export sales target for FY25

In a notification sent to PSX on 26/06/2024, Interloop Limited (ILP) has approved USD 58 million investment in hosiery plant expansion and also sets USD 670.80 million export sales target.

We would like to apprise that the Board of Directors of Interloop Limited (‘ILP’) in its meeting held on June 25, 2024, (Tuesday) at 10:00 A.M at K2 Meeting Room, Interloop Industrial Park located at 7-KM Khurrianwala-Jaranwala Road, Khurrianwala, Faisalabad, has approved the Annual Budget of the Company for the Fiscal Year 2024-25, amidst other items. The export sales target for FY25 has been set at USD 670.80 million. The Board has also resolved to approve the capex expansion across various business segments, including the following(s):

• Hosiery Plant 6:
  In line with the earlier correspondence, the Board has approved enhancing capacity in Hosiery by 25% with the installation and commissioning of Hosiery Plant 6 by Q1’FY26, adding 1,584 additional knitting machines. The total approved investment for Plant 6 is USD 58 million.
• Denim Expansion:
  A capital outlay of USD 18.8 million by Q4’FY26 for the commissioning of an additional 20 lines in Denim has been approved. This expansion will be phased over two years, increasing capacity to a total of 18 million (approx.) garments per year.
• Yarn Dyeing Expansion:
  In order to cover the consistently growing demand for dyed yarn, the Board has approved the expansion of ILP’s in-house spun yarn dyeing capacity by 20 metric tons to 28 metric tons. The total capital outlay is approved at USD 13.2 million. The plant is expected to be commissioned by Q1’FY26.
• Renewable Energy:
  Being cognizant of the environmental impact of our ongoing expansions and to reduce GHG emissions, an additional 4MW capacity for Solar generation, with the cost of USD 2.1 million has been approved and will be commissioned by Q3’FY25. It will increase our green energy generation capacity to 16.6MW.”

ILP shares were last trading at Rs.72 today.