The Hindu Business Line : RRD Tex to double capacity

TIRUPUR-based RRD Tex Private Ltd engaged in knitted garment exports is doubling capacity across its production chain, from yarn to garmenting, to meet demand in the global market.

Part of the three-decade-old Best Group of Tirupur, the company has chalked up a Rs 157 crore expansion project that will lift up its in-house production of hosiery yarn, knitted fabric and garment-making capacities to a new high. The project includes the setting up of a Rs 12-crore greenfield processing facility at the Perundurai's SIPCOT industrial estate.

"We are strengthening our spinning from the present 25,000 spindle to 65,000 by setting up a new 40,000 spindle unit and raising our fabrication capacity (for producing knitting fabric) by adding 40 knitting machines to the present 20 machine factory. We are also expanding our garmenting facility by installing 750 sewing machines at our new garment unit at the Nethaji Apparel Park in the new Tirupur area to beef up our garment production," said Mr R. Rajkumar, Managing Director of RRD Tex Pvt Ltd.

Mr Rajkumar told Business Line that the vertical expansion was being implemented in two stages and that it would be completed by March 2006. The expansion will see its undergarment production to go up from the present 1.5 million pieces a month to three million pieces, and its baby wear from five lakh pieces to one million pieces, he added.

A major player in undergarments and baby wear, the Best Group exports to markets in the European Union and the US. Among the major global garment labels that outsource from the company are US-based Sara Lee and UK-based MotherCare.

The expansion is being undertaken to cope with the demand from garment importers, especially from the US.

The Tirupur knitwear exporting company is toying with the idea of launching local branding in knitwear and is likely to introduce a ladies undergarment brand by middle of next year.

With the quota free garment market propelling demand for additional production capacity on garment companies in Tirupur, RRD Tex is facing pressure of expansion and diversification.

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