The Hindu Business Line : Supreme Yarns plans to expand capacity

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Chennai Feb. 8 Supreme Yarns Ltd plans capacity expansion through new facilities for spinning and dyeing. It also plans to foray into the finished garments business.

According to Mr Ajay Gupta, Joint Managing Director, "Our focus on growth is by being present in the entire value chain of garment making — right from yarn making to finished garments."

In the finished garment business, the company will manufacture T-shirts to start with. "We may initially produce around 30,000 pieces (a day) of T-shirts of various fibres, and we are in talks with major global brands such as JC Penney and GAP for selling our finished products," Mr Gupta said.

The company at present has a capacity to produce 12,000 tonnes of yarns a year. The new units are set to come up in Ludhiana, where the company's existing facility is located, and will add 30,000 spindles to the present 33,216 and double the dyeing capacity to 24 tonnes a day.

The company, listed in BSE, registered a turnover of Rs 115 crore for the year 2005-06, and expects to post at least 10 to 15 per cent more this year. Currently, 25 per cent of the company's turnover comes from the export business. "We are exporting our products to many leading textile players in Europe," said Mr Gupta.

In India, the company currently supplying its products to textile majors such as Welspun, Arvind Mills and Bombay Dyeing.

According to Mr Gupta, the new project would cost Rs 250 crore and would be funded mostly by debt and internal accruals.

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