Textured Jersey gets bullish; gears for well-knitted future
Thursday, 7 November 2013 00:39
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Announces $ 4 m capacity expansion and modernisation project
$ 4.5 m multi-fuel boiler and power plant to be commissioned by 2014/15
Gets $ 780,000 per annum deal to provide technical service and management to knit fabric manufacturer in India
Reaffirming its bullishness on growth prospects and to make a stronger effort to reap the potential Textured Jersey Lanka PLC (TJL), yesterday announced several key initiatives involving nearly $ 10 million in investments.
Styling itself as the premier knit fabric manufacturer in Sri Lanka, TJL said to sustain competitive advantage and maintain growth, a number of significant investments and initiatives to add capacity and modernise its plant, to substantially reduce energy costs, and to make inroads towards successful regional expansion have been initiated.
Further, to strengthen its senior management team and facilitate the next phase of growth, the company also recently announced the appointment of Sriyan de Silva Wijeyeratne as CEO/Managing Director.
“The combination of these initiatives is likely to ensure that growth is sustained both in the short as well as in the long run, thereby assuring the continuous delivery of value to the shareholders of Textured Jersey,” the Company said.
The capacity expansion and modernisation project is an estimated US$ 4 m investment, which is expected to add 10-12% capacity, enable specific fabric finishes and improve efficiencies. To facilitate the capacity expansion, a new water treatment plant will also be constructed. This effort is expected to be completed during the last quarter of FY2013/14.
To limit its dependency on the national grid and reduce the overall energy costs, TJL has commenced the construction of a multi-fuel boiler and power plant.
This plant is expected to be commissioned during the early part of the 2014/15 financial year and has an estimated cost of US$ 4.5 m. Once operational, the plant is expected to produce the total current steam requirement of the factory, and substantially reduce its dependence on furnace oil. The steam generated will also be used for air conditioning, thereby reducing electricity consumption. Additionally, the steam will also be used to generate 1 MW of power, reducing the company’s dependence on the national grid.
The company also announced that it has entered into a Technical Service and Management Agreement with Ocean India Private Ltd (OCI), a knit fabric manufacturer located in India. The announcement states that TJL will receive a fee of US$ 780,000 per annum for the services provided to OCI. The agreement is valid for a period of two years commencing from October 2013. In addition to the fee, this arrangement should provide TJL with insightful information and experience to ensure the successful implementation of its regional expansion strategy.
TJL has been at the forefront for continuously innovating and developing its products and services, aiming to deliver unparalleled speed, quality, reliability, sustainability and value for its customers.
This approach has enabled TJL to build a strong and sustainable client base, cultivating deep relationships with major customers such as Intimissimi, Victoria’s Secret, Marks and Spencer, Decathlon and DBA brands – some of the world’s largest apparel brands – allowing it to sustain profits and revenue growth, even in times of weak and uncertain demand conditions.
Last week TJL reported a net profit of Rs.263 million for 2Q14 (up 68% YoY), resulting in a net profit of Rs.504 million for 1H14 (up 53% YoY)
