Indo Count Industries is doing pretty well today. The stock, which had closed yesterday at Rs.113.80, rose almost 13% to hit an intraday high at Rs.128.20. The 20% UC of the day is at Rs.136.55.
The stock has reacted positively to its expansion and modernisation projects of existing capacities on a capex of Rs.200 crore, to be funded through a mix of internal accruals and debt.
The company is planning to expand its bed linen capacity by 20% from its existing annual capacity of 90 Mn meters to 108 Mn meters by debottlenecking and balancing its facilities.
Further, the company proposes to make a brownfield investment for adding commensurate cut & sew facilities and for enhancing the capacity for Top of the Bed products. This will entail a capex of - Rs.150 crores. The existing spinning unit will also be modernized with compact spinning technology. This will entail a capex of Rs. 50 crore.
Post modernization, this capacity will also be used for captive consumption in the company's home textiles unit.
The projects are expected to be operational in H2 of FY2022.
The company said that the home textiles plant is operating almost at its full capacity and it taking into consideration the increasing demand and growing business volume, that it was decided to undertake expansion and modernization. These investments are expected to increase the revenue by Rs.600 crores over the next 2 years, post commissioning.