Ramraj Cotton, a producer of shirts, dhotis and innerwear, based in Tirupur, a textile hub in Indian state of Tamil Nadu, intends to invest one billion rupees for setting up a new weaving unit in Sankagiri in Tamil Nadu during ongoing calendar year.
Briefing media, Mr. KR Nagarajan, Founder and Chairman of Ramraj Group, said the new facility would have a capacity to produce 150,000 metres of fabric per day. The proposed amount for investment would be raised from internal accruals, he added.
The Group currently operates five production facilities at Erode, Tirupur, Bangalore, Madurai and Coimbatore and has invested three billion rupees in these facilities so far.
The existing capacity of the group stands at 20,000 shirts, 100,000 pieces of innerwear and 250,000 metres of fabric per day.
Sharing his views on the sidelines of opening of company’s two new Shop ‘N’ Shop outlets in the city of Hyderabad in Andhra Pradesh, the Group Chairman said they expect their turnover from Andhra Pradesh market to reach rupees one billion by next year.
He said already having impressive turnover at present, the company looks forward to achieve an overall turnover of Rs. 10 billion by next year. Shipping its goods to Singapore, Mauritius, Dubai and Malaysia, the firm earns five percent of its overall revenues from exports, Mr. Nagarajan said.
Noting that the firm holds half the market share for dhoti in South India, he added that the Group’s shirt-dhoti sale ratio stands at 35:65. Also, he said the dhoti market in India is worth Rs. 10 billion.
Mr. Nagarajan said being a key market player in four southern states, the Group is now planning penetration in northern and western states over the next two years.
However, he said these states do not have acceptance for dhoti and hence they plan to infiltrate in these markets with production of kurta and pyjama.
