Yarn produced to be captively used for knitted garment production
Tirupur, Nov. 19
The five-decade-old Jupiter Knitting Company, involved in knitted garment exports from Tirupur, is set to implement a new spinning project at a cost of Rs 30 crore as part of its backward integration to its garment export business.
The company is setting up the 12,000-spindle greenfield spinning project, in partnership with another promoter, which will come up in Gopichettipalayam in nearby Erode district. The yarn to be produced from the spinning project will be captively used by the company for knitted garment manufacture.
Mr S. Krishnaraj, Managing Partner, Jupiter Knitting Company, told
Business Linethat the new project will start operating by 2008.
Jupiter Knitting started in 1957 originally as a hosiery manufacturing unit was engaged in production and marketing of basic inner garments in domestic market for over 30 years, until the unit decided to get into exports in late 80s, first as deemed exports and later into direct shipment to European retailers since 1993.
The company totally stopped manufacture of hosiery goods for domestic market some four years ago to fully concentrate on exports.
The company is equipped to produce one million pieces garments per month and it specialises in undergarment exports (two million pieces per month). Its exports of undergarments and fashion outer garments constitute 50:50. The current challenge in knitwear exports, according to him, working with short lead-time given by the importers and the thin margins, which have forced his company to link the business turnover with profit earning by cost savings.
While backwardly integrating production line and continuous technology updating will help to trap the margin spillovers in the coming days, the in-house production resorted to by Jupiter in accessories used for export merchandises such as labels/stickers and packaging materials such as polybags, hangers and PVC bags has also led to cost savings, Mr Krishnaraj added.
Jupiter Knitting is planning its 50th anniversary celebration next year.