J.G. Hosiery plans Rs 800-mn expansion

Kolkata: J.G. Hosiery Pvt Ltd, manufacturer of Amul branded innerwear, on Tuesday announced a Rs 80-crore expansion plan which envisages increasing production capacity from 3.5 lakh units per day to five lakh units per day. The cost of expansion would be met from both internal accruals and debt, according to Mr Sandeep Seksaria, Director of the company. Addressing a press conference here, he said the company’s existing production facilities are located at Tirupur and Kolkata . While the production capacity at these locations would be augmented, the company is also setting up a manufacturing facility in Delhi. Mr Seksaria said the company was among the top-three players in the innerwear business in India and its range of hosiery products are sold under the umbrella ‘Amul’ brand. Plans are being firmed up to launch two more new brands within the next three months, he said. According to him, the potential for organised players in the “largely-unorganised innerwear market” has gone up manifold. This provides branded players with an opportunity to offer good-quality and designer products. The company has targeted a turnover of Rs 210 crore during the year ending March 31, 2008, up from Rs 150 crore recorded in 2006-07. In the current fiscal, the company plans to spend Rs 15 crore on brand promos.