Pioneer Embroideries is selling its factory Land and Building of manufacturing unit at Naroli for an amount of Rs 702 lakh. The entire proceeds from sale of factory land and building shall be used to reduce its term liabilities, which will also help in lowering the interest burden on the company.
Naroli unit generated sales of about Rs.617 lakh in current year and it has insignificant share in overall sales and profitability of the company. As the company has pending embroideries orders in hand, it will enter into a leave and license agreement with the Buyer for a portion of the facilities retained for manufacturing use therein to sustain specific business obligations. Pioneer has already moved most of its embroidery manufacturing to its recently set up, state-of-the-art unit for Embroideries and Laces at Shree Ganesh Integrated Textile Park, Degoan, Dhule in Maharashtra. The reorganising and reduction in operations at Naroli unit is in line with the Company’s stated objective of consolidating and modernizing its embroidery business at Degaon.
Pioneer Embroideries is one of the largest manufacturer-exporter of Embroideries, Torchon/Bobbin laces, Raschel laces and other garment accessories.
