The Hindu Business Line : Tubeknit Fashions eyes US market

"The garment sector freed from the quantitative restrictions last year has provided new opportunities for those capable of meeting the demand, but the constraints of limitations in production has come in the way. The existing customers in Europe say they want to buy more and we too want to start shipments to the US markets," said Mr P. Parthasarathi, Managing Director.

Tubeknit Fashions supplies fashion apparels in the men's/women's segments to several top European brands such as Tesco, Next, Animal, S Oliver, Cool Cat, We Europe, Tommy and Imps and Elfs. Tubeknit's present production capacity is spread across a 10-tonne per day fabric dyeing, 1.8 tonnes per day yarn dyeing, eight tonnes a day of knitted fabric and 38,000 pieces of garment and the fashion garment range produced by the company includes casual `T'-shirts, sports wears, singlets, polarshirts, sweatshirts, pullovers and cardigans and babywears.

Capacity expansion

The company's expansion plan, envisaged at Rs 100 crore, includes setting up of a 20,400 spindle spinning unit, installing additional dyeing equipment and embroidery and printing machines besides stitching machines, said Mr Parthasarathi and added that the company had to double its garment production to 78,000 pieces a day to start exporting to the US market.

The company, which has also set sights on brand acquisition to tap the domestic market, is looking at various options to fund its expansion. "We are weighing various options, including an initial public offer and private equity proposals," said Mr Parthasarathi.

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