Raymond Ltd has announced the expansion of capacity for worsted suiting at Vapi, Gujarat, by 3-million meters per annum. This would be an integrated facility starting from spinning up to finishing of fabric. The total cost of expansion is estimated at Rs1,970 million. It is expected to go on stream from April 7, this year.
The first phase of expansion announced last year is expected to start commercial production on schedule. After this expansion, the company would have a total capacity for worsted suiting of 31-million meters per annum. This would be one of the largest integrated manufacturing facilities for worsted suiting in the world.
The textile industry in India is witnessing one of the most buoyant periods. The textile division of the Company had recorded a revenue of Rs6,120 million for the nine months ended December 2005, a growth of 12 per cent over the same period in the previous year. The suits and trousers manufacturing facility set up by the company as a part of its strategy to be a "one stop shop" is already operational and a large portion of the exports growth in the business is likely to come through this route. The domestic market for formal wear is also witnessing a uptrend as the levels of disposable incomes go up with the growth in the economy.
Announcing the expansion, Gautam Hari Singhania, chairman and managing director, Raymond Ltd, said, "The outlook for the company''s textile business continues to be buoyant as the economy is in a new growth phase. The company is moving forward as planned along the path of becoming a world class integrated textile player through putting up world class manufacturing capacities and partnerships with internationally well reputed premium players."