Upper circuit alert: This textile stock has surged significantly upon announcing plans to set up a new facility in Gujarat

Over the next 2 years, the company expects that this facility shall add to its top line in a more significant manner and also promote brand loyalty by fulfilling the needs of a large customer base.

Garment Mantra Lifestyle Ltd (GMLL), formerly known as Junction Fabrics & Apparels Ltd, announced its plans to construct a new facility in Surat, Gujarat. To give a brief background of the company, GMLL is engaged in the business of garment manufacturing and selling of both knitted fabrics as well as knitted garments.

This facility, which shall be centralized and integrated, is being set up to efficiently cover the western region and expand the business operations of Poorti, which is GMLL’S textile wholesale surplus division. Along with this, this move will also provide a boost to Price Mantra, the company’s apparel convenience store and strengthen their brand visibility in the region.

With this move, GMLL expands its operational footprints beyond Tirupur, Tamil Nadu. Over the next 2 years, the company expects that this facility shall add to its top line in a more significant manner and also promote brand loyalty by fulfilling the needs of a large customer base. This facility has been planned in such a way that it shall strategically build and grow strong revenue models from Poorti and eventually expand the presence of Price Mantra.

With an area of approximately 10,000 square feet of area, the facility is equipped with modern facilities to enable efficient management of operations, which the management expects to commence in this quarter i.e., Q4FY22. It shall also improve the region's access to inventory and enhance the services offered to customers. Furthermore, this development is aligned with the company’s vision to ramp up a very large number of Price Mantra Store model in the coming 2 to 3 years across tier 2 and 3 towns of India.

At 12.35 pm, the share price of Garment Mantra Lifestyle Ltd (GMLL) was trading at Rs 185.15, which is set 20% above the previous day’s closing price of 154.30 on BSE.