ECONOMYNEXT – Sri Lankan fabric maker Teejay Lanka said it has doubled apacity of its Indian mill with the completion of an expansion project with an investment of US$ 15 million (more than Rs 2.3 billion).
The firm, listed on the Colombo bourse, is now equipped to produce 42 million metres to tap into the growing EU market after the resumption of the GSP duty free market access scheme, a statement said.
The expansion at Teejay India generated additional employment opportunities for up to 276 people.
Teejay India was incorporated in 2009 as Ocean India Private Limited and became part of the Teejay Group in 2015, as a fully-owned subsidiary of Teejay Lanka, one of the region’s largest textile manufacturers.
Located within the 1,000-acre Brandix India Apparel City (BIAC) in Vizag, Andrapradesh, Teejay India is now capable of manufacturing up to 42 million metres of Weft knitted fabric annually using machines for knitting, dyeing, finishing and inspection, the company said.
The expansion entailed the installation of state-of-the-art machinery for knitting, dyeing, finishing and inspections as well as fully-automated Packing Machines, a Lab Dip Dispenser for Colour Service and a chemical dispensing system. These can produce 12,500tons of fabric a year.
“We now have a remarkable new facility in India which is one of the best in BIAC and sends a clear message that Teejay is a global company which believes in high standards of production, and is ready to take on more orders,” the company’s deputy chief executive Pubudu De Silva said.
“The decision to expand despite tough market conditions is likely to be one of the best the company has made, as it equips Teejay to tap into the broader Asian and expanding EU business.”
Teejay, which supplies fabric to some of the best international brands across the world, is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka, which has a 33 per cent stake and Pacific Textiles of Hong Kong which owns 28 per cent of the company.
(COLOMBO, May 21, 2018)