“The Hindu Business Line : Suryajyoti Mills to get into garment production”

The Hindu Business Line : Suryajyoti Mills to get into garment production

Posted: 22 Nov 2010 11:05 AM PST

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Suryajyoti Mills to get into garment production

Company may raise funds through QIP route.

The company has tied up with Italian firm Pangea SRL, which services labels such as Dolce & Gabbana, Giorgio Armani and Roberto Cavali, to set up the country's first speciality bottom-weight fabric weaving, dyeing and finishing plant.

Amit Mitra

Hyderabad, Nov. 22

Suryajyoti Spinning Mills is weaving its way higher up the value chain by drawing up plans to get into garment production, a major part of which will be exported to leading global brands in the apparel segment.

Simultaneously, the company is in the process of ramping up its production capacity by adding 25,000 spindles to its existing capacity of one lakh spindles from three plants in Andhra Pradesh.

Expansion plans

"To fund these expansion plans, we may consider raising some equity through the QIP route next year," Mr A.K. Agarwal, Executive Director of the company, told Business Line. It started the process of moving up the value chain last fiscal by tying up with Italian firm Pangea SRL to set up the country's first speciality bottom-weight fabric weaving, dyeing and finishing plant.

Major customers

Pangea has been servicing the requirements of global fashion labels such as Dolce & Gabbana, Giorgio Armani and Roberto Cavali.

"The fabric that we produce is sold in India and overseas under the brand name Pangea Fabrics. The major customers in the domestic market are the export houses that cater to the needs of the US and EU markets in the bottom wear segment," Mr Agarwal said.

To make further progress in the value chain, Suryajyoti is expected to finalise plans to get into garments in the next few months.

"We will initially supply to major fashion brands and may consider bringing out our own brand of garments later," he said.

global trade

Global textile and apparel trade is distinctly recovering after a slump during the recession-hit 2008-09 and is expected to touch $1 trillion by 2020 from the present level of $510 billion, according to a latest report by management consulting firm Technopak.

The Indian domestic textile and apparel market size in 2009 was estimated at $47 billion and is expected to grow at 11 per cent CAGR to reach $140 billion by 2020.

The company aims at completing the expansion of its capacity by 25,000 spindles at its Rajapur facility at a cost of Rs 75 crore by the next fiscal.

It has been estimated that to capture a significant chunk of the additional global textile and apparel market by 2020, the domestic industry may require an investment of $9 billion to add 13.6 million new spindles for spun yarn alone.

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