“We are expecting completing the Rs 100-crore ongoing capacity expansion programme by July or August this year. After its completion, the facility’s capacity will stand at 10 million metres. We have proposed another expansion programme, with an investment of Rs 100 crore more in two years,” said S Krishnamoorthy, president – textiles division, Aditya Birla Group.
The proposal is to increase the capacity from 10 million metres to 13 million metres and the investment needed will be funded from internal accruals, he added.
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The company has a market share of 75 per cent in linen fabrics and garments, with Rs 500-600 crore turnover from the segment. It is also planning to invest around 9-10 per cent of the turnover in brand building exercise and expects to double its market size in states like Tamil Nadu.
The top selling states for the company are Andhra Pradesh and Karnataka, while Tamil Nadu contributes to around five per cent of its turnover for the linen business.
Meanwhile, Jaya Shree Textiles on Wednesday launched its 76th exclusive showroom for its premium brand, Linen Club, in Chennai.
The company is planning to expand the number of exclusive brand outlets from 76 to 200 by 2015. Besides, the brand is also present through around 3,000 multi-brand outlets across the country. Most exclusive brand outlets are run by franchisees.
Each outlet would require an investment of Rs 80 lakh, Krishnamoorthy said.
The company would also consider setting up operations overseas, though plans would not start before 2015. The company is looking at places such as Sri Lanka, Malaysia and West Asia in the long term, he added.
Jaya Shree Textiles imports yarn from France and Belgium and almost 85 per cent of its revenue from linen sales is from fabric, while the rest is from ready-to-wear garments. The company clocked a revenue of around Rs 1,200 crore last year and is expecting yearly 10 per cent growth, Krishnamoorthy said.