Pioneer Embroideries Shuts Down Coimbatore Unit, Moves Ahead With Modernising Embroidery Business

Company Performance

Pioneer Embroideries Shuts Down Coimbatore Unit, Moves Ahead With Modernising Embroidery Business

Pioneer Embroideries Limited (PEL), one of the key players in the Embroidery & Laces (EL) business in India and owner of brand "HAKOBA", shut down its labour-intensive embroidery manufacturing unit at Coimbatore on July 31, 2022. The factory land and building will be monetised, and the old, low-speed embroidery machines would also be disposed off, as these have already served their useful life. PEL continues its strategic initiative of modernising and consolidating EL business. PEL had earlier announced that existing embroidery units will be sold over a period of time and it would consolidate its embroidery business at Shree Ganesh Textile Park, Degaon, Dhule, to benefit from enhanced efficiency and economies of scale. PEL enjoys good marketing reach and distribution network to cater to the domestic and overseas customers. In the near term, PEL will outsource embroidery manufacturing to serve its customers and retain overall current level of business. PEL will also transfer Bobbin Lace machines to its existing factory at Sarigam, Gujarat, over the next two months, and does not expect any loss of business in the meantime. PEL will use sale proceeds towards ongoing state-of-the-art new embroidery project at Shree Ganesh Integrated Textile Park, Degaon, Dhule, Maharashtra. Hence, Coimbatore closure will have insignificant impact on the overall sales and would prove EBIDTA accretive over medium-to-long term.