Sportking to invest Rs 160 cr in garment unit

Under the Punjab government's mega project scheme, the Ludhiana-based leading readymade garment manufacturer, Rs 350-crore Sportking group, will soon set up a manufacturing facility in Punjab with an estimated investment of Rs 160 crore in one and a half years.

Significantly, the company's decision to set up this facility in the state came within a year of its Rs 130 crore investment in its Ludhiana-based plant.

The company will raise the money through internal accruals and debts.

With the proposed investment, the company plans to set up 50,000 spindles in the new plant for yarn making, which will take the number of spindles of the group to 135,000. The group now has a total capacity of about 85,000 spindles. Post-investment, the yarn production capacity of the group will jump to 110 tonnes per day.

Speaking to Business Standard, Munish Avasthi, managing director, Sportking group, said: "We are still looking for a suitable location for setting up our manufacturing facility and it will be decided soon. "We have a yarn-making capacity of 80 tonnes per day, which will jump by 30 tonnes per day with new investment," he added.

After the completion of the expansion, the group will look at increasing its turnover to Rs 500 crore a year from the current Rs 350 crore.

The group manufactures garments for children, men and women, in addition to supplying yarn to other manufacturers. Its product range includes thermal wear, T-shirts, trousers, tracksuits, pullovers, shorts, casuals and jackets.

It had also diversified into education with the setting up of the Sportking Institute of Fashion Technology.