PAKISTAN: Nishat Chunian to invest $1m in US unit
Nishat (Chunian) Limited (NCL), the fourth largest vertically integrated textile company in Pakistan, hopes to increase its textile exports to the US by investing US$1m to set up a subsidiary in the country.
The company's board of directors said that the State Bank of Pakistan (SBP) has approved an initially equity investment of US$0.10m, along with seed money of US$0.10m. The investment will later increase to US$1m.
NCL posted 14% sales growth in the first quarter of the current fiscal year 2013, helped by higher yarn exports to China.
The company has a spinning capacity of 150,000 spindles producing 50,000 tons of greige yarn per annum and 293 air jet looms producing 3m yards of greige fabric per month.
Improved energy supplies, cuts in bank mark-ups, a waiver of EU import duties and lower levels of inflation helped textile mills across Pakistan grow in the first quarter.
The country's textile and clothing exports jumped by more than 8% to US$5.4bn in the five-months to November 2012, mainly boosted by increased shipments of cotton yarn, woven ready-made garments, cotton fabrics, and towels.