Lahore: Interloop Limited (ILP) is solidifying its position as a prominent exporter in the family clothing sector, with recent strategic expansions and capacity enhancements. The company is operating its new apparel plant at a 50% capacity utilization rate, enabling it to reach breakeven levels at EBITDA. This development marks a significant step in ILP's growth trajectory as it becomes a one-stop clothing solution for major brands like Adidas.
According to JS Global, ILP's Denim plant is currently operating at a 68% utilization rate, with plans to expand its capacity from 12 million to 18 million pieces. This strategic focus on fashion products and innovative designs distinguishes ILP from its competitors. The company has successfully eliminated the need for outsourcing its hosiery orders with increased production capacity. However, the management has identified India's potential entry into the EU hosiery market as a significant long-term competitive risk.