Interloop Limited plans $300 million expansion to capture pent up demand

KARACHI: Interloop Limited (ILP) has plans to invest $300 million to expand its production capacity and install apparel factory to capture the pent up demand.

“The management is targeting to double its revenues by FY26. We are modelling revenue growth of 46 percent over the next three years and earnings growth of 41 percent,” Muhammad Maqsood, the President/Group CFO of Interloop said.

ILP is Pakistan’s leading textile player, has an immense growth potential as it has continuously expanded and diversified its product line. Nearly 90 percent of its revenue comes from exports where major customers in the hosiery segment include Nike, Target, Puma and Adidas. It supplies socks and leggings to these retailers.

The four clients contribute more than half of the export revenue. With the rollout of vaccination in US and European region, the demand is expected to remain resilient in the coming months. This coupled with order diversion to Pakistan from US/China trade spat and shift in orders from India and Bangladesh during pandemic will likely help ILP to achieve a sustainable growth going forward.

“What is extremely noteworthy is that ILP has the first right of refusal based on strong commitment and high quality, giving it a distinctive edge over competition,” Maqsood said.

Maqsood highlighted the company continued to expand to address rising demand and enhance footprint. “To highlight, the denim expansion is on track, and is expected to complete in 4QFY21. In the hosiery segment, capacity would be enhanced in a phased manner starting from September 2021 as the company is operating at maximum rated capacity”.

Interloop management highlighted that they have strong commitment to ESG standards. They have invested heavily in renewable energy to reduce their carbon footprint and water consumptions. Additionally, the company is heavily investing in sustainability standards of cotton. Additionally, the company is heavily investing in cotton sustainability standards that helps in securing orders.

Interloop Limited is a textile based B2B manufacturing company based in Faisalabad, Pakistan. It supplies socks and leggings to retailers like Nike, Adidas, H&M, Puma, Levi’s, Reebok and Target. The company has five hosiery manufacturing divisions, located in Pakistan, Bangladesh and Sri Lanka.

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