Kewal Kiran Clothing acquires 53,000 sq ft land for expansion

Mumbai, Oct 10 (UNI) Kewal Kiran Clothing Ltd (KKCL) has acquired over 53,000 sq feet of land at Dabel in Daman for its expansion purposes.

Announcing this, a company's release issued here today said it will kick-start its expansion plans in two phases, from March and September 2007, with its total production capacity increasing to approximately four million pieces per year. Of the 53,000 sq feet land acquired, the company will be constructing on about 40,000 sq feet at Dabel.

''With the land acquisition complete, we will soon start commercial production at the sites, hiking our total annual output to around four million pieces per year. We have lined up this expansion plan, keeping in mind the lucrative margins that we see in the ever expanding ready-made garments and high fashion industry,'' Chairman and Managing Director of Kewal Kiran Clothing Limited Kewalchand Jain said.

The new facilities are expected to start commercial production in two phases, in March and September 2007, resulting in an additional 1.3 million garments stitching and finishing capacity per year. This would be in addition to the 0.7 million garment stitching and finishing capacity contributed by the expansion of KKCL's existing unit at Daman.

It also plans to utilize the additional FSI available in the newly acquired land. Since the new facilities are adjacent to the existing facilities of the company, this will significantly improve KKCL's operational efficiencies. The existing and new facilities will be bifurcated into cutting and stitching, finishing and central warehousing facilities.

The land acquisition for the company's enhanced production facility is in line with the object of the company's initial public offer, earlier this year.

UNI SN MJ SKB1953