Suryajyoti Spinning Mills is talking to some European companies specialising in garment washing technology for a tie-up, as it plans to get into garment production this fiscal.

“Only a few Indian firms have specialised washing technology. We are looking for an overseas technology partner for garment washing to enable us to get into full-fledged garment business by this fiscal,” Mr Arun Agarwal, Executive Director of the company, told Business Line .

Initially, the company will supply garments to major fashion brands globally and later may consider spinning its own brand. The domestic textile and apparel market is expected to grow at 11 per cent compounded annual growth rate to touch $140 billion by 2020, according to industry estimates.

Profits rise

Suryajyoti clocked a net profit of Rs 5.79 crore in the quarter ended March 31, 2011, up from Rs 1.01 crore in the year-ago quarter, while sales soared to Rs 128.34 crore from Rs 77.60 crore.

For the whole year, its net profit and sales were Rs 15.83 crore and Rs 394.26 crore, up from Rs 3.66 crore and Rs 269.53 crore, respectively. “The increase was on account of the high cotton yarn prices in the later half of the year. Also, our fabric unit contributed a turnover of Rs 90 crore,” Mr Agarwal said.

The company, which has lined up a capital expenditure programme of about Rs 100 crore, will be raising new equity of about $10 million either through qualified institutional placement or as private equity. “We may also go to the capital market again to raise the money, depending on market conditions. We will be finalising one of these options by this fiscal,” he said.

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