Birla VXL to dress up Digjam

SK Birla group textile firm to extend brand to menswear.

Birla VXL Ltd, the textile outfit of SK Birla group, is planning to extend its fabrics brand Digjam to men's apparel in order to give a big push to its readymade garment business.

The company has already hived off the OCM division in Amritsar to a new company called OCM India Ltd.

The company earlier used to sell men's readymade garments under Jack Barclay brand.

Once a premier textile outfit, Birla VXL fell sick in the mid 1990's after its capacity expansion project ran into rough weather following an industry downturn.

Chairman of Birla VXL S K Birla told Business Standard that bad days of Birla VXL were over.

The company is now looking forward to bring back its old glory.

According to him, the company is now contemplating to launch new ranges of menswear under Digjam brand.

"We are thinking of developing Digjam as a readymade brand too. It is already well known as a fabrics brand throughout the country. We could take that advantage. The company is now working on this issue," he said.

Birla pointed out that the company might not continue with its earlier readymade brand Jack Barclay.

The brand profile of Jack Barclay was never in the same league of OCM and Digjam earlier. "It is an European brand and the recall is not as strong as Digjam," he added.

According to Birla, the company is likely to spend a portion of the rights issue proceeds for relaunching its menswear range under the Digjam brand.

The company is aiming to raise Rs 25 crore through a rights issue.

Commenting on the status of the company, he added that debt has been brought down from close to Rs 400 crore to only Rs 120 crore in July 2006.

"The company is now in much better position than earlier and the debt is under control," he added.

The company is now going through a corporate debt restructuring process through Asset Reconstruction Company of India (ARCIL).