Raymond plans Rs 100cr capex

Raymond today announced further expansion of its denim manufacturing capacity by 10 million metre per annum at a cost of Rs 100 crore.

According to a release issued by the company to the BSE today, the initiative augments the company's denim capacity at its Yavatmal denim unit to 40 million metre per annum.

"The company has recently commissioned a world class rope indigo dyeing plant, which will enable the company to reach the additional denim capacity by January 2006," the release added.

Gautam Singhania, CMD of Raymond, said: "This investment for augmenting our denim division will help in meeting the unfulfilled demand for specialty denim from our discerning and trend setting customers. Over a period of time, I envision exporting most of our denim production as high value added jeans wear to the best labels worldwide. As a step towards achieving this, Raymond has already set up EverBlue Apparel (a 100% subsidiary of Raymond), which is a 10,000 pieces a day, state-of-the-art jeans wear facility at the apparel park in Bangalore."

Raymond has chosen denim as a thrust area for its global forays, and has already invested Rs 350 crore at its world class plant at Yavatmal in the Vidharbha region in Maharashtra, the release said.