Textured Jersey braces for developing Indian plant capacity
View(s):Textured Jersey Lanka PLC (TJL) has plans to double its capacity in the newly acquired Ocean Indian factory in India, officials said. ”Initially we want to integrate Ocean India’s existing mill in India to facilitate immediate production and its consolidation has to happen. Then in the next financial year we want to double its capacity to 32 tonnes a day,” an official told the Business Times.
According to him, the prospects of GSP + concession in future would further augment TJL’s momentum where European customers account for nearly 65 per cent of TJl’s revenue. The company has bigger plans in terms of the type of materials they will make, the official added. “We want to expand from basic cottons to other materials and in terms of this we want to bring in process innovations to fabrics that we manufacture.”
TJL expects to inorganically expand capacity via this acquisition as an initiative to become the leading solutions provider of knit fabric in the South Asian region, he said, adding that the company’s strategy is to undertake more profitable and research and development driven orders in line with the turkey model concept, which is in line with R&D driven value added fabric orders.
TJL’s bottom line for Q1 FY 16 grew 25.6 per cent year on year (YOY) to Rs. 206 million. TJL achieved a 3.1 per cent YOY growth in top line supported by demand for value added products along with the consolidation.