The Faisalabad-based textile exporter is increasing investment in production capacity and factory modernisation as improving financial performance supports its expansion strategy.
Pakistan’s leading textile and apparel manufacturer, Interloop Limited, has approved an additional Rs6.5 billion investment in its apparel and hosiery businesses to expand manufacturing capacity, upgrade existing facilities and improve operational efficiency.
The investment was approved by the company’s Board of Directors on October 22, 2026, at Khurrianwala, Faisalabad, according to a disclosure submitted to the Pakistan Stock Exchange (PSX).
Expansion and Modernisation Priorities
The approved budget covers capital expenditure (CAPEX) and Balancing, Modernisation and Replacement (BMR) activities across Interloop’s apparel and hosiery operations.
The programme aims to increase production capabilities, improve manufacturing efficiency and support evolving requirements from international customers.
The company has not disclosed the investment’s allocation between business segments, additional production capacities or implementation timetable. Interloop operates a vertically integrated manufacturing business spanning hosiery, knitted apparel, denim, seamless activewear and yarn production, supplying major international clothing brands.
Investment Follows Strong Earnings Recovery
The expansion comes after a substantial improvement in Interloop’s financial performance. During FY2025–26, consolidated revenue increased 4.6% to Rs187.7 billion, while net profit more than doubled to Rs12.45 billion, compared with Rs5.65 billion in the previous year.
The momentum continued into the first quarter of FY2026–27, when consolidated sales increased 12.3% to Rs50.75 billion and quarterly profit rose 54.3% to Rs4.23 billion.
Strengthening Pakistan’s Value-Added Exports
Interloop’s investment reinforces its focus on higher-value finished textile products rather than conventional commodity-based manufacturing. The expansion could strengthen its ability to serve international buyers requiring reliable production capacity, consistent quality and shorter delivery cycles.
For Pakistan’s textile industry, investment in apparel and hosiery manufacturing is particularly important for improving export value addition and operational competitiveness. However, the commercial outcome will depend on capacity utilisation, customer orders, financing costs and manufacturing margins.
The next indicators to watch are the investment rollout, additional production capacity, operational savings and incremental export revenues generated by the expansion.
