ESI mulls shifting to machine based production to raise output
31 May '06
1 min read
Considering global demand and to earn higher profit margins, fabric manufacturers, Eastern Silk Industries Ltd (ESI) mulls shifting to machine-made fabrics from handlooms by investing Rs300 crore in next two years, according to S S Shah, Chairman.
By 2008, company estimates that machine-made fabrics would amount to 70 percent of total production from current 30 percent, informed Shah.
He also added that this strategic shift to machine-made fabrics would increase net profit by about $3 per metre.
Company's production capacity would reach 8.5 million metres in next 18 months from 7.2 million metres of fabrics a year.
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