Garment exporter Tubeknit Fashions plans Rs 100 cr expansion
NewKerala.com, India
Tirupur (Coimbatore), Apr 23: Tirupur-based garments exporter Tubeknit Fashions plans to spend Rs 100 crore to ramp up its garment manufacturing capacity from 30,000 pieces per day to 78,000 per day.
The company would set up 20,400 spindle spinning unit near Tirupur at a cost of Rs 41 crores and install additional machineries for dyeing, printing, cutting and embroidery, Tubeknit Managing Director P Parthasarathi said.
Company is still working out the details of raising capital with an option of even tapping the capital market.
The outlay is proposed to be funded through private equity with option of even going to public, he said.
Parthasarathi also said the company was in the final stages of setting up a Joint Venture Company with an European partner in the area of processing.
“We have set aside a target to invest Rs 14 crore in processing, of which Rs 10 crore will be invested in the JV,” he said.
The expansion project is expected to take off by Septemberhis year and is likely to be completed in a year.
Parthasarathi said that a part of the investments will also be put into developing Tubeknit’s domestic brand for Indian markets.
“We may acquire or promote an existing local brand to set up our brand for the domestic market,” he said. Tubeknit Fashions turnover for the financial year ended March 31 2005-06 was Rs 155 crore and the company is targeting a turnover of Rs 180 crore for the year 2014-07.
