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Anna Peter

Mumbai , Sept. 26

ESKAY K`n'it, an integrated fabric and garment manufacturer, is setting up an office in Guangzhou, China to increase its share in overseas business.

The office will also operate as a distribution and warehouse centre. Currently, the company's indirect exports account for nearly 50 per cent of its output, while direct exports make up a very small percentage.

Mr Navin Kumar Tayal, Chairman, Eskay K`n'it, said the company is hoping to raise the quantum of its knitwear exports to China. The office will also help source products within China for exports to the US and Europe and even import textile products into India.

The company is relying on the Guangzhou's proximity to Hong Kong. Mr Tayal said that the office would organise customer meets for Chinese and Hong Kong customers at regular intervals based on the business potential.

Mr Vipul Mehta, Marketing Counsellor, Eskay K`n'it, said that the company had identified 54 producers in China, ranging from knitwear to woven garment players, and buyers of yarn from India and Pakistan.

It has also identified China, Hong Kong, Singapore, and West Asia as key markets for its exports.

Mr Tayal pointed out that the Chinese Government, which will face restrictions on its textile trade in till 2008, is keen on exploring joint venture options with Indian players. Instead of shutting down units, Beijing is keen to tie up with Indian companies, he said.

He added that the Chinese National Textile Apparel Council would visit the country again in November-December to scout for more manufacturers to partner with.

On the company's expansion plans, Mr Tayal said that the company had already ploughed Rs 100 crore into the expansion, so far financed through internal accruals. The expansion will double its knitting capacity to one million pieces.

In February this year, Eskay announced a Rs 316-crore project to expand spinning and fabric capacities. Mr Tayal said that last year, the company posted a profit for the first time since the 9/11 crisis, which resulted in the mass cancellation of orders from the US and plunged the company into the red.

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