INTERVIEW – Banswara Syntex to raise garment capacity
Reuters India, India
MUMBAI (Reuters) – Textile maker Banswara Syntex Ltd. plans to raise garment capacity to four times in two years, hoping to cash in on India’s booming retail sector that has seen a flurry of private labels, a senior official said.Banswara, which has begun supplying to brands owned by Lifestyle and Westside, expects sales to private labels to grow to a fifth of revenue in two years from 5 percent now, Joint Managing Director Ravi Toshniwal said on Monday
“We want to say we will be available for private labels in India,” he told Reuters in an interview. “There is a retail explosion in India and margins for private labels are better than exports.
Banswara would raise capacity to 400,000 pieces each month in two years, he said adding it hoped to have a revenue of 4 billion rupees in the year to March 2014, compared with 3.2 billion rupees last year.
The garment capacity expansion is part of a 500-million-rupee plan to also raise weaving and yarn making capacity.
