Vippy Spinpro to invest Rs 50cr in modernization and expansion program
Vippy Spinpro said that its board of directors has approved an INR 50 crores plan for modernization and expansion program at its spinning unit in Dewas, Madhya Pradesh.
The Indore-based yarn spinning mills company said that the program is proposed to be financed through a term loan of INR 33.5 crores and the remaining amount of INR 16.5 crores from internal accruals.
Vippy Spinpro said that it will subsequently put up the order of machinery accordingly.
The existing capacity of the company’s spinning unit is 9,000MT of open end of 100% cotton yarn and the capacity utilization was 75.84% during the financial year 2020/21 due to Covid-19. After lifting the lockdown, Vippy Spinpro is said to have utilized 95.69% capacity.
Vippy Spinpro proposed to add a capacity of around 3,500MT through the modernization and expansion program.
The program will be completed in June/September 2022.