The Rs 225 crore (Rs 2.25 billion) Birla VXL is planning to foray into garment manufacturing under the Digjam brand.
The company also plans to consolidate its marketshare in the premium worsted suiting segment. With the garment foray, the company eyes over a 20 per cent hike in its turnover. Birla VXL is a part of the Rs 600 crore (Rs 6 billion) S K Birla group.
We are planning to foray into manufacturing of garments by the end of 2005. At present we are consolidating our marketshare in the premium worsted suiting segment. The company has recently launched four fabrics in the premium suiting range," said Rajiv Pal, DGM - marketing, Digjam.
Birla VXL is the second largest player in the premium wrosted fabrics segment, with over a 25 per cent market share. It has two units -- the Digjam unit at Jamnagar in Gujarat and the OCM unit at Amritsar in Punjab.
The Digjam unit has a capacity to manufacture over seven million metre per annum and the facility operates at optimum capacity.
Digjam contributes to around a turnover of Rs 125 crore (Rs 1.25 billion), of which 40 per cent comes from exports. The company supplies to some of the world best suit makers in Italy, France, the US, Japan.
The company is debottlenecking the Jamnagar facility by upgrading the machineries among others. It has acquired the world's best technologies from countries such as France, Germany, Switzerland, Belgium and South Korea among others.
The company has over 40 exclusive retail outlets of its own concentrating mainly on the western and southern part of the country.
The company plans to enhance the presence of these outlets in the northern and eastern part of the country by the end of the next financial year.
It has recently invested in research and development to provide differentiation in all aspects such as fibre, design, texture and finishing amongst others. With this initiative, the company is all set to offer technological solution at the 3,000-plus outlets across the nation and in the international market.
The company is revampimg its retail outlets across the country.
