Nahar Spinning Mills Limited has informed the Exchange about Capacity addition
NAHARSPING · price
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Nahar Spinning Mills' board has approved a modernization plan for its spinning units across various locations. No new capacity will be added; instead, old Ring Frame machines will be replaced with ultra-modern machinery, expected to improve production efficiency by about 9%. The company will also install an 11 MW Solar PV system. Current capacity utilization stands at 94.15% across 573,408 spindles, 1,080 rotors, and 769 airjet spindles. Total investment is around Rs. 350 Crores (Rs. 325 Cr for spinning modernization and Rs. 25 Cr for solar), to be funded through internal accruals and bank term loans, with completion targeted by FY 2027-28. Management expects lower production costs, better product quality, and increased exports to the US and EU markets.
This is a significant capital outlay that should boost operational efficiency and reduce costs in the long run, but it will mean higher depreciation and debt servicing in the interim. The modernization without fresh capacity suggests the company is focused on quality and export competitiveness rather than volume growth, which could support margins over time.