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Kolkata-based Dollar Industries Ltd – the third largest hosiery brand in the country – plan to set up a new manufacturing unit in Ludhiana at an expected cost of Rs 25 crore.
To be built over a one-acre plot, the unit is expected to be operational by the end of the next fiscal.
According to Vinod K Gupta, Managing Director, Dollar Industries, the new unit will cater to thermal and outer-wear. Outer-wear offerings are under the brand ‘Force’ and include mainly jeans, trousers and chinos.
“We are already in possession of the land. Work is expected to begin soon and the unit commissioned by end of FY-16,” he told reporters during a press conference.
The company reported a turnover of Rs 689 crore and a profit of over Rs 61 crore for FY-15. It is targeting a 24 per cent increase in net sales this year to Rs 850 crore.
Its manufacturing facilities – both owned and outsourced – are located across Kolkata and Tirupur (for hosiery); Delhi for socks; and, Ludhaina (thermal wear).
Dollar competes with Indian vendors like Lux and Rupa; and with international brands like Jockey and Hanes in the Rs 5,000 crore organised hosiery and knitted products segment.
Listing
The company also plans to list on the BSE or NSE soon. It is currently listed on the regional Calcutta and Jaipur Stock Exchanges. It has already appointed a merchant banker to oversee the matter.
“We are hopeful of listing on the BSE or NSE soon,” Gupta said.
According to him, the company will also explore further fund raising options once its Ludhiana project is through and it has listed on a national stock exchange.
Crocodile licensee
Dollar, which also owns the licence for manufacturing and marketing of “Crocodile” branded apparels, is looking to enter into Pakistan and Sri Lanka later this year. Crocodile is a Singapore-based apparel-maker focussing on the mid-market segment.
The Indian licence for Crocodile is held by Coimbatore-based SP Apparels.
“We have licences for the manufacture and marketing of Crocodile apparels in the countries neighbouring India. We are firming up plans to enter Bangladesh and Pakistan soon,” Gupta said. It currently markets “Crocodile” apparels to Nepal and Bhutan.
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