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Delhi-based knitwear and garment maker, TT Ltd plans to exit the spinning business and focus on garment manufacturing.
TT reported a near-25 per cent dip in turnover at ₹511 crore and also posted a net loss of ₹15 crore in 2017-18. The company has a strong presence in the innerwear segment in North and East India through its flagship TT brand. It also exports yarn and fabric to 65-odd countries.
According to Sanjay Jain, Managing Director, TT Ltd, the company has already shut three of its five spinning units due to the low margin and high risks associated with the sector. “We will exit the spinning business,” he said.
Jain attributed the loss in the last fiscal to the “ongoing restructuring exercise” and tax-related issues.
“This fiscal we will be back in the black. We will also focus on high value-added offerings through our garment range,” he told BusinessLine .
New garment units
TT will invest around ₹50 crore to set up garment-making facilities in Uttar Pradesh, Howrah (West Bengal) and also ramp up existing units in UP, Tiruppur (Tamil Nadu) and Kolkata (West Bengal).
The unit in UP is likely to go on stream from July 18. “It will take some 2-3 months for the unit to stablise.”
The company also procures from third-party manufacturers in Ludhiana and Delhi.
Diversification plans
As part of TT’s diversification plan, it had set up garment brand ‘HiFlyer’ in 2017. The brand is now being retailed through both offline and online channels.
Expansion will be through a network of exclusive brand outlets (EBOs) and mutli-brand outlets. The EBOs, being set up in the franchisee model, will be branded ‘TTbazaar’, and will mostly be neighbourhood stores. TT already has 50 such standalone outlets, most of them franchisee stores.
The company also intends to expand its presence through its online portal ttbazaar.com.
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