Plans for a significant Taka 97 crore investment to build a new spinning plant have been revealed by Envoy Textiles Limited. This investment is expected to boost the company’s manufacturing capacity by 4,550 tonnes per year. According to a filing with the stock exchange, this strategic expansion is concentrated on producing cotton-polyester-spandex core-spun yarn in order to meet the increasing market demand.
With financing arranged as 30 per cent equity from retained earnings (about Taka 29.19 crore) and 70 per cent sourced from bank borrowings (around Taka 68.11 crore), the project is expected to be completed by December 2025.
Modern ring-spinning production facilities with state-of-the-art equipment from Europe and Japan will be part of the new facility. About 60 per cent of the yarn generated will be used internally for denim production, with the other 40 per cent going to the export market, according to corporate disclosures. For this expansion project, the corporation projects a payback period of roughly 4.53 years.
Along with its development goals, Envoy Textiles recorded a net profit of Taka 25.33 crore for the first quarter of the current fiscal year (July–September), a stunning 134 per cent year-over-year increase over the same quarter last year’s Taka 10.82 crore. Additionally, revenue increased by a strong 40 per cent throughout this time, reaching Taka 439.94 crore. The net profit for FY ’24 was Taka 60.04 crore, which was higher than the previous fiscal year’s Taka 32.73 crore.
