Demand for branded products is always growing. To meet this demand, Siyaram’s has decided to expand its fabrics and garments manufacturing capacity at an outlay of Rs. 160 crores this fiscal.
The Siyaram’s Vice-Chairman and Managing Director, Mr. Ramesh Poddar, told PTI that his company plans to increase the fabrics capacity by about 10 lakh metres a month. “The expansion work which will start by August-September will be funded through internal accruals and loans.”
Siyaram’s, which enjoys a market share of 20 per cent in the Rs. 6,000-crore organised market, currently manufactures 550 lakh metres of fabric every year and will increase the capacity by 125 lakh metres. It also makes 2.5 lakh pieces of garments every month and plans to increase it to 3.2 lakh pieces, he added.
The company operates four plants at Tarapur near Mumbai for weaving and yarn dyeing, two at Daman for garments and one at Silvassa for weaving. Owning brands like J Hampstead, Oxemberg and Siyaram MSD, it plans to open 40 stores during the current fiscal, mostly through the franchise route.
Mr. Poddar said: “We have 100 exclusive shops and we will add another 30-40 stores. Since it will be mostly through franchise, we will not have to invest much. Our share may be somewhere around Rs. 3 crores. Last year we clocked a net turnover of Rs. 900 crores and expect this to touch around Rs. 1,100 crores this fiscal. Gross sales should be 15% more than net sales.”
He also said the revenue contribution from garments will be close to Rs. 200 crores. Exports, primarily to West Asia, are expected to increase to Rs. 75 crores this year from Rs. 50 crores.