JVS Export plans 2nd manufacturing unit

To expand capacity following demand from US, Europe

JVS Export, the Karur-based manufacturer of kitchen textiles, expects to set up its second manufacturing unit of 2 lakh sq ft in Karur at an investment of around Rs 25 crore.

The company, which supplies to Wal-Mart, the world's largest retailer, has decided to expand capacity following a rise in demand from customers in Europe and the US.

M Britto, partner, JVS Export, told Business Standard, "We will double the existing automatic looms to 66 looms by setting up the second manufacturing plant in 15 acres of land. The expansion will be partly funded by the Central Bank of India and the remaining by internal accruals." The second manufacturing unit will also manufacture kitchen textiles "" dish cloth, table cloth and other kitchen accessories.

He pointed out that there has been pressure on pricing after the phasing out of quota but volumes have been growing with the increase in demand from US and Europe.

JVS Export is a family-run partnership firm and has a turnover of Rs 100 crore. With business growing and expansion on the cards, there are 'operational difficulties.' Therefore, JVS plans to convert itself into a private limited company for which due diligence is being carried out, he said.

Britto said that the company also plans to enter the bath towel segment by 2006 and bedsheets by mid-2007, the blueprint for which is being worked out.

JVS Export supplies to Canada-based Sears, a multi-channel retailer with a network of 122 full-line departmentalstores and 219 off-mall stores; Primac Stores in UK and South Africa-based retail stores Pet Stores.

JVS Export was recently awarded the 'International Supplier of the Year 2004 Award' from Wal-Mart for effective implementation of processes that have improved supply chain efficiencies in the international markets.

The award was given for successfully implementing the point-of-sales replenishment programme in 2004 and vendor tools such as 'Retail Link' that resulted in better management of inventories and tracking of sales by item, store, distribution centres and goods in transit so that customers found JVS products on the Wal-Mart shelves on time.