Prateek to invest Rs 83 cr on its 7th unit

Prateek Apparels, which is into apparel production, retailing and exports, plans to set up its seventh plant and the company's largest integrated garments factory in Karnataka with an estimated investment of Rs 83 crore.

A Phulchand Group company, Prateek Apparel's all six manufacturing units are located in Karnataka "" five in Bangalore and one in Hubli. So far, the company has invested Rs 45 crore on the six units. The seventh unit is coming up in Tumkur on 28 acres. The company has already acquired land and expects the factory to commence production in a year.

"This will be the biggest factory for the company. The financial closure for this project has been achieved. We have tied up with financial institutions, which will fund 50 per cent of the project cost. The remaining share will be generated through internal accruals," Prateek Apparels MD Pradeep Agarwal said.

The integrated factory will have garment stitching, knitting, tailoring, embroidery and packaging facilities under one roof.

It will double the size of Prateek's existing production capacity. It will employ close to 5,000 personnel. The company chose Tumkur owing to the availability of real estate and human resources.

Agarwal attributed the expansion to the tremendous demand for apparel products from the domestic market.

"The country is witnessing a retail boom. We are seeing a strong demand for apparel products. The demand will continue to pick up pace as retail industry catches on in the secondary and tertiary cities," he added.

The retail boom prompted the company to enter the domestic market on its own. Recently, Prateek Apparels ventured into retailing through its subsidiary Prateek Lifestyle Ltd. Its first venture "" Coupon "" a value lifestyle mall was opened in Bangalore and Raipur.

It also forayed into the kidswear with the launch of Kanz (in a licensing agreement), an European brand from Germany. Two exclusive stores of Kanz have been opened in Bangalore.

Prateek Apparels also intends to start a training institute in the factory site on all aspects of garment production. "This is to create a ready pool of talent for the company," he pointed out.

The privately-held company supplies 95 per cent of its production to the domestic retail industry with exports accounting for the rest.

It supplies garments to brands like Levi's, John Players, Westside, Benetton, Pepe, Lifestyle and Wrangler. The company, which employs 5,000 personnel at present, produces 515,000 pieces of garments (shirts, kidswear, chinos, jeans, cargo pants) every month.

"We intend to raise the output from our existing factories in the coming days," he said.

The Phulchand Group has interests in trading chemicals, minerals, metals and agro products.