The Board of Directors of the Company, has approved a brownfield expansion project of its spinning facility located in Alte, Kolhapur, Maharashtra. The project involves increasing the existing ....
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Indo Count Industries Ltd's Board has approved a brownfield expansion at its Alte, Kolhapur spinning facility, increasing capacity from 70,000 to 94,000 spindles (adding 24,000 spindles). The expansion costs approximately ₹60 crore and is expected to be operational by Q2 FY 2027. Additionally, the company will modernize its existing Gokul Shirgaon spinning mill at a cost of ~₹25 crore to improve operational efficiency. Total capex outlay is ₹85 crore, funded through a mix of debt and internal accruals. The existing facility is running at 98% capacity utilization, indicating the expansion is needed to meet demand and shift toward higher value-added products.
The expansion signals strong demand outlook and a strategic move toward higher-margin products. The high capacity utilization justifies the investment, but the ₹85 crore capex will increase debt levels. Shareholders should monitor execution timelines and debt servicing costs.