With the denim industry on its way to add 100 million metres per annum for the next one year, Raymond UCO Denim Private Limited is set to join the bandwagon too. The joint venture between Raymond Ltd, and Belgium-based UCO NV will be doubling its denim apparel manufacturing capacity, apart from expanding its denim fabric unit as well over the next two years.
"Given the improved market conditions both abroad and within the country, we plan to double our denim apparel manufacturing capacity as well as expand denim fabric capacity. The expansion process will take around couple of years to complete," said SK Gupta, group chief executive officer of Raymond UCO Denim Private Limited. Currently, the company has a denim fabric manufacturing capacity of 40 million at its Yavatmal plant, out of which it manufactures around 35 million metres per annum. The company plans to expand the fabric capacity by adding another nine million metres per annum. On the other hand, Raymond UCO's Bangalore unit which has a manufacturing capacity of around 1.7 lakh pieces of denim apparels per month is set to double in couple of years at an investment of Rs 15 crore.
Raymond UCO also runs a manufacturing facility in Romania at a capacity of six million metres per annum. "With the expansion in almost all our manufacturing units, we will be investing in all Rs 135 crore in next two years," Gupta added.
The company exports around 60 per cent of its total fabric and apparel production. Raymond UCO's clientele includes the likes of VF Corporation, Levi's, Pepe and Tommy Hilfiger, among others. According to Gupta, the company expects to grow by 20 per cent over last year to post a turnover of Rs 650 crore for the financial year 2010-11.