Pioneer Embroidery kicks off production at new Maharashtra plant
Pioneer Embroidery Ltd. (PEL) has achieved a milestone by launching commercial production at its new Degaon unit, part of the Shree Ganesh Integrated Textile Park (SGITPL) in Maharashtra. After securing all necessary regulatory approvals by the end of August 2023, PEL is now fully operational at this state-of-the-art facility. The move follows Pioneer Embroidery’s strategic disposal of its Coimbatore unit in August 2022 and aims to ramp up efficiencies in embroidery and laces production.
The Degaon unit is outfitted with eight high-end, computerized machines imported from Lasser AG, Switzerland. This technological investment completes the second leg of Pioneer Embroidery’s business strategy to consolidate embroidery production, modernize equipment, and cut down labor costs. With this move, Pioneer Embroidery boosts its embroidery manufacturing capacity to a whopping 2,400 million stitches across its Degaon, Sarigam, and Naroli units, a significant uptick from the previous 1,700 million stitches.
Looking forward, Pioneer Embroidery plans to capitalize on festival demand and export orders to bolster its turnover. Already a recognized name in the Embroidery and Laces (EL) segment, Pioneer Embroidery enjoys a host of advantages, including an extensive nationwide marketing presence, solid exporter relationships, and over three decades of industry experience. With improved manufacturing capabilities, the company is strategically poised to extend its product range and quality.
Financials from FY2023 show that Pioneer Embroidery’s EL business has experienced a robust 14.21% increase in turnover, reaching ₹4,582 lakhs, up from the previous year’s ₹4,012 lakhs. The total investment in the Degaon plant and equipment stands at approximately ₹41 crores. At peak capacity, the new unit can generate a turnover of around ₹50 crores, offering ample room for further expansion. In addition, Pioneer Embroidery holds a significant 33.2% stake in SGITPL, having invested ₹10.56 crores, solidifying its role as a lead promoter in the integrated textile park.