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Raymonds launches apparel arm to cater to export mart
E-Tex Staff - Bangalore
Towards becoming a global player, Raymonds, has announced the launch of an
export-oriented readymade trousers and suits subsidiary, Silver Spark Apparels,
in Doddaballapur, near Bangalore. It will export readymade garments to global
outsourcing brands, said CMD, Mr Gautam Hari Singhania.
Another unit for denims is to be inaugurated in Jaunary in Karnataka at an investment
of Rs 40 crore, he added. Its foray into the global apparel outsourcing market
has been driven by increased prospects for exports post-removal of quota regime
and introduction of the Multi Fibre Agreement in January 2005. The new investments
would help Raymond realise its goal of “being the largest apparel manufacturer
in this part of the world,” he said. Silver Spark Apparel has been set
up at an investment of Rs 42.5 crore. It is expected to add nearly Rs 200 crore
to Raymond’s turnover. It has an annual capacity of five lakh suits and
13 lakh trousers. The other subsidiary - Everblue Apparel - will have a capacity
of three million jeans (10,000 units per day) in phase I.
Explaining the logic behind two subsidiaries, Mr Singhania said that it was
“easier to manage” and simpler in case customers wanted to take up
equity stake.
Although, he said there was no such plan as of now. Explaining the foray into
export-oriented readymade garments, he said that most of the three million metres
of fabric supplied by Raymonds were later being exported by customers for stitching.
“The customers can now save costs involved in transporting the fabrics
for stitching it elsewhere.”
Raymond is also reportedly mulling an investment of around $30-40 million in
a greenfield fabric unit in Thailand. Mr Singhania declined to give details
saying that though there was an investment plan “in principle,” for
a 10 million metre facility in Thailand, a formal commitment was yet to be made
by the board. “The amount of investment would depend on the kind of operations
planned. It is premature to make announcements,” he said.
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