Ludhiana-based Supreme Tex Mart Ltd, the flagship company of vertically integrated textile player Supreme Group, plans to establish a new fashion knitwear unit.
The company will install new machines for an additional capacity of 5 lakh pieces per annum. The proposed expansion in its existing facility would start this month and is expected to be operational by end of March 2014.
An investment of Rs 15 cr would be mobilsed to add new machinery at the existing location and would be funded through TUF (echnology Upgradation Fund) scheme of Government of India.
According to Ajay Gupta, the Managing Director of the Supreme Group, "The expansion has been undertaken keeping in mind robust demand for fashion knitwear from the European market and successful implementation of its earlier project within the same facility. The company envisages improvements in realisations and margins as there will be more focus on value added products. "
Gupta added that the revival of demand in Europe and increasing competitive edge of Indian garment manufacturers over Bangladesh and China has given impetus to the export demand.
‘With this expansion the company expects to compete in the high-end fashion knitwear industry with likes of competing countries like Turkey, Bangladesh and China. "
Post expansion, the Supreme Group would provide employment to around 3,000 families across all business verticals and have 7 manufacturing units across 5 different locations in Ludhiana.
