A yarn dyeing and weaving plant is to be set up in Tamil Nadu to produce dyed Greige fabric and the renowned Ramco Fabrics, a Ramco Group company and a division of Rajapalayam Mills Ltd., is taking the lead in this initiative.
P.R. Venketrama Raja, the chairman of Ramco Group stated that this new unit is being set up by them as part of the forward integration plan and that the new unit would become operational by the second quarter of 2019-20.
An investment worth INR 250 crore is to be made in the new unit in the initial phase and it will have an initial production capacity of 10 million metres of Greige yarn dyed fabrics per annum. Moreover, it will also cater to fibre dyeing needs of Ramco Melange products.
Most of the customers of Ramco Group who manufacture fabrics, were in habit of buying high count yarn from them and further gave it for weaving. After this process, these yarns were used to make fabrics. They thereby requested the Ramco Group to provide value added product to them in order to let them have woven yarn of consistent quality.
This step in this regard, is thus a value-addition which would provide to its customers the much needed woven yarn of consistent quality. This initiative is also seen as a remarkable value added step towards forward integration and for the customers, they would be getting consistent quality of woven yarn.
Recent capacity of the Rajapalayam Mills is around 1.35 lakh spindles. The textile division of Ramco Group comprises of Rajapalayam Mills Ltd. And eight other manufacturing units; boasting a total revenue of INR 1,300 crore. The exports comprise 30 per cent of the revenue while 25 per cent of it comes from corporate customers in the domestic market.
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