We are submitting outcome of board meeting for Expansion, Modernisation of Composite Textile plant and partial sale of machinery
Awaiting price reaction for this filing.
The board of Girnar Spintex Industries has approved a Rs. 40 crore expansion and modernization plan for its composite textile facility in Kolhapur, to be executed over 12 months. The company plans to add 11,040 spindles, increase sizing capacity by 3 tonnes per day, and double processing capacity to 1,00,000 metres per day, while also building a 20,000 sq ft shed. To fund this, the company will partially sell older machinery — 10,080 spindles and 52 looms worth Rs. 6.26 crore — to five unrelated buyers by September 30, 2025, with the balance funded through bank borrowings and promoter unsecured loans. The move is part of the company's strategy to shift from pure spinning to a full 'Fiber to Fabric' composite textile model, building on its recent acquisition of Mahaalaxmi Texpro's textile business.
This is a significant capital commitment for a small textile company and signals a strategic shift towards higher-margin composite textiles, but it also raises debt levels and execution risk over the next 12 months. Shareholders should watch for capacity utilization post-expansion and any impact on margins from the new technology spindles.