The Hindu Business Line : Raymond commissions suiting unit in Vapi

The first phase of the project, with warping, weaving and finishing facilities, has a capacity of three million metres per annum. The Rs 120-crore first phase will be followed by a Rs 200-crore second phase to be commissioned in April 2007.

Mr Gautam Singhania, Chairman and Managing Director, Raymond Ltd, said once spinning facilities were added, the Vapi facility would be one of the most modern integrated worsted suiting units in the country.

Speaking at the inauguration of the plant, he said with domestic demand seen strong, the entire production from the first phase was likely to be consumed by the domestic market. The company has, therefore, decided to go ahead with the second phase.

Export market

About a third of the production from the plant would be targeted at the export market. Mr Singhania said the huge domestic market was a distinct advantage for Indian manufacturers. But the company would continue to target the export market to establish itself as a global brand.

According to him, Japan is emerging as an important destination for Indian textiles.

"Apart from the traditional export markets of the US and Europe, Japan has begun to see India as an important source market," he said.

About half of the production of Raymond's Bangalore denim unit has been booked by the Japanese market for the next five years. Unit realisations, however, are higher in the domestic market, which is essentially a branded market unlike that abroad.

The company was in a "growth phase" and had invested Rs 967 crore in capacity expansion over the past two years. It is considering entering new segments like technical textiles; home textiles are, however, not one of its options, he said.

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