Nahar Spinning Mills Ltd , a prominent player in the textile industry, has announced an ambitious modernization plan aimed at enhancing its operational efficiency and sustainability. The company's Board of Directors has approved a comprehensive upgrade of its spinning units across various locations, coupled with the installation of a significant solar power system.

Modernization Initiative

The modernization plan, with a total investment of Rs 350.00 crore, comprises two key components:

1. Spinning Unit Upgrade: An allocation of Rs 325.00 crore for replacing old ring frame machinery with ultra-modern equipment. This upgrade is expected to increase production efficiency by 9%.

2. Solar Power Integration: Rs 25.00 crore earmarked for installing an 11 MW Solar PV System, reinforcing the company's commitment to sustainable energy practices.

Project Timeline and Financing

The company aims to complete this extensive modernization project by the financial year 2027-28. Nahar Spinning Mills plans to finance this initiative through a combination of internal accruals and bank term loans, demonstrating a balanced approach to funding.

Current Operational Capacity

Nahar Spinning Mills currently operates with:

• 573,408 spindles
• 1,080 rotors
• 769 airjet spindles

The company reports a capacity utilization of 94.15%, highlighting its operational efficiency even before the planned upgrades.

Strategic Objectives

The modernization initiative is designed to achieve multiple strategic objectives:

1. Improve operational efficiency
2. Enhance product quality
3. Reduce production costs
4. Enable diversification into quality-conscious markets, particularly in the U.S. and European Union

Financial Performance

The company's recent financial results reflect a solid foundation for this significant investment:

Dividend Announcement

In addition to the modernization plan, the Board of Directors has recommended a dividend of Rs 1.00 per equity share of Rs 5.00 each, subject to shareholder approval at the upcoming Annual General Meeting.

This strategic modernization plan underscores Nahar Spinning Mills' commitment to technological advancement and sustainable practices in the textile industry. By investing in state-of-the-art machinery and renewable energy, the company is positioning itself for enhanced competitiveness in global markets while addressing environmental concerns.

Nahar Spinning Mills Limited , a prominent player in the textile industry, has reported a significant boost in its financial performance for the first quarter, alongside announcing an ambitious modernization plan.

Financial Highlights

The company's unaudited financial results for the quarter reveal a remarkable 141% year-on-year increase in net profit. Nahar Spinning Mills posted a profit of Rs 15.96 crore for the quarter, compared to Rs 6.64 crore in the same period last year.

Revenue from operations remained relatively stable at Rs 819.28 crore, compared to Rs 820.88 crore in the corresponding quarter of the previous year. This stability in revenue, coupled with a substantial increase in profit, indicates improved operational efficiency and cost management.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a notable improvement, rising to Rs 57.90 crore from Rs 52.52 crore in the previous year. Consequently, the EBITDA margin expanded to 7.07% from 6.40% year-over-year.

Modernization and Expansion Plans

In a significant move, Nahar Spinning Mills' Board of Directors has approved a comprehensive modernization plan for its spinning units across various locations. The plan involves a capital outlay of approximately Rs 325.00 crore. Additionally, the company will invest Rs 25.00 crore in an 11 MW Solar PV System for its own consumption, bringing the total investment to Rs 350.00 crore.

Key points of the modernization plan include:

1. Replacement of old textile machinery with ultra-modern equipment
2. Expected increase in overall production efficiencies by 9%
3. Improvement in product quality
4. Potential for diversification and increased exports to quality-conscious markets in the U.S. and European Union

The company aims to complete this modernization by the financial year 2027-28, financing it through a combination of internal accruals and term loans from banks.

Dividend Announcement and AGM Details

The Board has declared a dividend of Rs 1.00 per equity share. The record date for dividend payment is set as September 5, 2025.

Nahar Spinning Mills has scheduled its 45th Annual General Meeting (AGM) for September 25, 2025, to be held through video conferencing. The company will provide remote e-voting facilities to shareholders from September 22 to September 24, 2025.

Outlook

With its strong financial performance and forward-looking modernization plans, Nahar Spinning Mills appears well-positioned to enhance its competitiveness in the global textile market. The significant investment in upgrading manufacturing facilities and adopting renewable energy solutions demonstrates the company's commitment to sustainable growth and operational excellence.

As the textile industry continues to evolve, Nahar Spinning Mills' strategic initiatives may help it capitalize on emerging opportunities and navigate potential challenges in the sector.