India’s second largest denim maker, Jindal Worldwide which saw post-pandemic boost in export business and a recovery in domestic demand is now looking at expansion and fund raising plans for the future.
As per the compnay, a de-risk strategy adopted by international buyers against Chinese supplies given a huge flip to Indian exports. Moreover the ‘work-from-home’ culture fuelled demand for denim and casualwear in the domestic market.
As per Gaurav Davda, Head of Corporate Finance & Strategic Initiatives, Jindal Worldwide, is now planning to expand denim capacity from 140 million metres per annum (MMPA) currently to 160 mmpa within next six months and further up to 180-200 mmpa over the next two years. The total capex plan is between Rs 150 to Rs 200 crore for all expansions including spinning capacity and augment denim capacity, premium shirting etc. Funds for expansion will be raised be through a mix of retained earnings, from lenders and through public equity. Davda says for the past 20 years of the company’s listing in bourses, they have not done any public fund raising. And having reached a sizeable number on business side, they can think of it. The company’s sales have bounced back from a washed-out April-June quarter from Rs 56 crore to Rs 414 crore in September 2020. After a loss of Rs 14.9 crore in the first quarter, it turned to black with profits of Rs 17.6 crore. However, they expect to close the fiscal with lower turnover compared to last year. JWW has appointed agents across 1he US and other parts of Asia catering to global brands such as M&S, H&M, Carrefour, JCPenny, Provogue, US Polo Assn, Pepe Jeans, Spyker, Mufti and Future Group.