Raymond to increase manufacturing capacity to 21 million metres

Raymond plans to increase its manufacturing capacity from 21 million metres to 46 million metres annually. This would be achieved through a new plant at Amravati as well as the existing one at Kolhapur. The company will be investing Rs 450 crores in a new textile unit at Nandgaon Peth in Amravati district in Vidarbha and it will have an annual capacity of 20 million metres of cotton fabric.

The plant at Kolhapur manufactures cotton and linen shirting fabric with a production capacity of about 21 million metres. This will now be increased to 26 million by 2018. More than 800 people are employed at this facility. It secures 20 per cent of its orders from exports. Raymond exports 15 per cent of its total production to Australia, North America, Brazil, Europe and the Middle East. It has a market share of 60 per cent in cotton fabric manufacturing. The Maharashtra government has decided to set up textile parks in the cotton belt of Vidarbha, Marathwada and north Maharashtra through Maharashtra Industrial Development Corporation (MIDC).

S K Gupta, President (shirting business) and group CEO (UCO Denim), Raymond, points out that with the new Amravati plant, production capacity will be ramped up to 46 million metres in next three years. Technology is being upgraded, he says. For the Amravati plant, 500 acres land has been allocated by the government.

Last month, Raymond reported a 28.46 per cent decline in consolidated net profit at Rs 40.11 crore for the third quarter ending December 2015 down from Rs 56.07 crore during the same period in the previous financial year. Raymond’s total consolidated income from operations during the quarter increased 7.36 per cent to Rs 1,484.40 crore as against Rs 1,382.58 crore in October-December 2015.