Dollar Industries Ltd to invest Rs 120 cr in expansion by 2025; sets target turnover of Rs 2,000 cr in three yrs

The company has set a target turnover of Rs 2,000 crore by March 2025 from Rs 1,360 crore in Fy22, he said, adding that the growth target will be supported by new launches, said Dollar Industries MD Vinod Kumar Gupta at a press conference.

"We are continuously expanding our product bouquet to maintain the growth momentum so that we achieve this target easily," he said. 

The hosiery maker, which holds 15 percent of the market share, launched a special logo to mark the completion of 50 years. Bollywood star Akshay Kumar is the current brand ambassador of Dollar men's innerwear range.

Sharing the roadmap of expansion till 2025, Gupta said Dollar would be adding one more spinning mill in Tamil Nadu's Dindigul.

"We are doubling our spinning capacity in Dindigul as we already have space to multiply up to five times," he said.

This additional capacity will be done at a cost of Rs 60 -65 crore and will be completed by the end of Fy23.

Gupta said the company has added Kurti and brassiere under its Dollar Woman category this year and received a good response so far. The company makes women's leggings under the brand name Dollar Missy for which Bollywood actor Yami Gautam is the brand ambassador.

Dollar also plans to open 25-30 Exclusive Brand Outlets (EBOs) this financial year and aims to increase this number to 125 by March 2025, mostly in Tier I and Tier 2 cities.

In West Bengal's Jagdishpur, the company is investing Rs 50 crore in a hosiery park cum  warehousing facility spread over an area of  3.5 lakh square feet and hopes to complete it by Diwali, this year.

"The integrated warehouse is likely to fetch us one to two percent of additional profits annually because of the economies of scale," he said.

It will generate employment for three to four hundred people, Gupta said

This warehousing facility will act as centralised despatch centre easing out logistics, enhancing economies of scale, rationalisation of staff and output and facilitating faster delivery, he said, listing the benifits.

Asked about setting up a spinning mill in Bengal, Gupta said Dindigul is a spinning hub and offers multiple advantages,

"We have spoken to Chief Minister Mamata Banerjee and the ministry of industry for support in this regard," he said.

A new knitting unit will be set up at Tirupur in Tamil Nadu as part of the expansion plan.

Currently, the company's manufacturing capacity is three lakh pieces per day but it will increase production in all four locations, including Kolkata suburbs, Tamil Nadu, Delhi and Ludhiana.

The Kolkata unit makes vests, briefs and trunks, kurtis, and leggings. "We are expanding our production network in West Bengal and warehouse in Jadishpur is part of the plan," Gupta said.

Meanwhile, Dollar Industries also announced its financial results for Q4Fy22 and Fy22.

It reported a Profit After Tax (PAT) of Rs 37.20 crore in the fourth quarter of FY22, up 84.63 percent compared to Rs 20.09 percent in Q4Fy21.

The company said its PAT for FY22 stood at Rs 145.87 crore, increasing 67.13 percent against Rs 87.28 crore in Fy21.

The company said its total revenue for Q4Fy22 stood at Rs 376.79 crore. It was Rs 310.44 in Q4Fy21. Its total revenue for Fy22 stood at Rs 1356.85 crore while it was Rs 1040.43 crore in Fy21.

Operating revenue jumped 20.98 percent to Rs 373.01 in Q4Fy22 compared to the year-ago period while it was Rs 1350.32 crore for Fy22, up 30.22 percent over the previous financial year.

EBIDTA for Q4Fy22 was Rs 59.16 crore whereas it was Rs 223.23 crore for Fy22.

Dollar Industries said it has a 4 MW solar power plant and its capacity will be enhanced to 6 MW.

The hosiery maker said its export market covers UAE, Oman, Jordas, Basra, Qatar, Kuwait, Bahrain, Yemen, Iraq, Nepal, Sudan and Nigeria.