SEO Version
The Textile Magazine
NOVEMBER 2011
|
95
TT Ltd.’s
Rs. 150-crore
expansion plan
TT Ltd. has chalked out
a Rs. 150-crore expansion
plan to take advantage of
the future market potential
in the Indian textile indus-
try. It is investing Rs. 25
crores on a garment manu-
facture unit in Tirupur, Rs.
100 crores on a spinning
facility at Rajula, Gujarat,
Rs. 15 crores on a PP yarn
facility at Gajroula in UP
and the balance Rs. 10
crores for modernisation of
the existing facilities.
The year 2010-11 was the best ever
for the company. Its turnover grew
fromRs. 354 crores to Rs. 487 crores,
a 38 per cent increase. The company
was able to use its resources to take
advantage of the turnaround achieved
in the global economy.
TT Ltd. has shifted its empha-
sis from commodity-based fbre to
more value-added segments of the
textile chain. In line with having a
more balanced and stable product
portfolio and a balanced market
between domestic and exports, the
company has entered into an agree-
ment to sell its ginning/oil undertak-
ing at Gondal, Gujarat, for Rs. 18.75
crores and invest Rs. 150 crores into
yarn, fabric and garments produc-
tion. It also plans to sell its other gin-
ning factory based at Rajula to exit
the volatile commodity type cotton
fbre business in total and focus on
more stable value-added business.
The company has reportedly in-
creased turnover of its knitwear seg-
ment by 50 per cent this year despite
the very diffcult situation in the
market due to an all-time high rise
in yarn prices resulting in lower to
fat growth rates in consumption.
The fast rate of growth inGDP, and
in specifc in Tier 2/3 towns dispos-
able income is going to see a mass
increase in per capita consumption
of fbre plus more value added qual-
ity products will be in demand. In
India still more than 50 per cent of
the garments comes from the unor-
ganised sector. However this share
is shrinking over the years as brand
preference is growing. This, coupled
with actual growth of 10-15 per cent
in market, will provide branded or-
ganised players a big growth oppor-
tunity. As per Technopak, the do-
mestic industry is expected to grow
from Rs. 2.18 lakh crores to Rs. 6.56
lakh crores in 2020.
In view of the above projection,
the medium to long-term potential
seems very good. Based on this, TT
Ltd. is planning to focus on domes-
tic sales of knitwear under its brand
TT and strengthen its base in cotton
yarn where India is a leader in the
global market.
w
Mr. Sanjay Kumar Jain,
Managing Director
corporate news
Powered by FlippingBook Publisher