Interloop Limited (ILP) is planning to invest about $100 million to set up a vertically integrated knitwear apparel plant, reported Link News on Tuesday citing the management of ILP.

During a discussion on the company’s latest financial results and future outlook, the management said the decision was made in view of an increase in the market demand. It added that the company, at present, was looking forward to doubling the capacity of its denim plant and increasing the production of 20,000 pieces per day to 40,000 pieces per day.

Under its vision 2025, ILP intends to double its revenue by $700 million. The expenditures of the plan will add up to $300 million from which 50% will be financed through debt whereas 50% through internal cash generation, adds the report.

Moreover, the company may also approach the State Bank of Pakistan to finance its operations at an interest rate of 2-2.5% with a maximum limit of $5 billion for the next five years.

It is to be noted that the net income of the company increased by 95% during the first quarter of the current fiscal year as compared to the first quarter of the previous fiscal year. During the same time period, the net sales of the company surged by 50% Year-on-Year to Rs. 19.3 billion as the company added new machinery in its hosiery division.

With the addition of denim and hosiery plants, the company is expected to gain more revenue.

Source: Pro Pakistani