Sri Jayalakshmi Spinning to foray into garment manufacturing

The Rs 25-crore Sri Jayalakshmi Spinning Mills Ltd, manufacturers of cotton yarn, is contemplating a foray into fabrics manufacturing and garmenting as pat of their forward integration plan, with an investment of Rs 50 crore.

The company plans to complete the project within the next year.

Sri Jayalakshmi Spinning might also a cotton yarn unit in Andhra Pradesh to cater to the increasing demands from the domestic and exports market.

"With the dismantling of quotas, there is tremendous scope for exporting garments from India and we will be foraying into fabric manufacturing and garmenting to tap this opportunity with major focus on the exports," Rambabu, finance director, Sri Jayalakshmi Spinning told Business Standard.

The company plans to fund its expansion through internal accruals along with borrowings from banks and financial institutions.

The company also plans to avail the technology upgradation fund scheme (TUFs) for modernising its plant and machinery.

The company has recently bagged a Rs 6.5 crore order from Bangladesh for supplying 100 per cent cotton 40/1 NE combined waxed knitting yarn. The entire order is expected to be executed in the next two months.

The company expects to bag another two big export orders from Bangladesh in the next two months.

"We use uster evenness Tester UT-3 with hairiness module, cascade and uster classimat CMT-3 for yarn testing. These yarns offer the consumers many advantages including reduced frequency of yarn breaks, increased efficiency, lower production costs and significant saving in burling and mending costs," said Rambabu.