Mumbai, May 17
KRISHNA Knitwear Technology is doubling its garment manufacturing capacity from the current 5 million pieces a year to 10 million by next year at an investment of Rs 2.5 crore.
The company, which has five sewing units in Navi Mumbai and Dombivli and at Tirupur (Tamil Nadu), is ramping up capacities in these units to take advantage of increased orders from existing customers.
According to Mr Sanjay Kumar Tayal, Chairman, Krishna Knitwear Technology Ltd, the company plans to double its spinning, knitting, processing and garmenting capacities in the next two years. This will entail about Rs 600 crore in investments.
The company, Mr Tayal said, would firm up plans for expansion in the next three-four months. Its turnover, he said, had grown to Rs 1,110 crore for the year ended March 31, 2005, over Rs 990 crore the previous year. There was surplus area at all the current plant sites to accommodate the expansion.
He said the company saw huge potential in the market post-2005. The company was also receiving more orders from existing customers, necessitating the need for capacity expansion.
Mr Tayal said: "Increasing sales is not a problem. While we can provide the volumes our customers are looking for, we want to sustain 4-5 times our current growth over the next 10 years. Buyers are also looking at players that are vertically integrated and that can sustain the volumes they need comfortably, which is why we plan to double capacity in the next two years."
Mr Tayal said that while the company had two brands of its own called League, a clothing line, and Asset, an undergarment range, brand building was a long-term exercise. However, the clothing market in India had matured vastly over the last five years. He said domestic consumption of knits was at 4-5 per cent now, but would rise to 20-25 per cent in five years. He said consumers today have become more focussed about their needs and are highly brand-conscious.
The company, he added, had also brought down its power costs to Rs 2.75-3 per unit by setting up a generation unit of 40 MW.
Some of its customers are Tommy Hilfiger, JC Penny, Wal-Mart, Guess and Sears and in Europe to Carrefour and Giorgio Armani.