Business Times

Textured Jersey to expand with aggressive growth

With plans aimed at opening out to a larger subcontinent in the future, Brandix-managed Textured Jersey has expansion plans in mind following the Initial Public Offering (IPO) in July. The IPO, set to raise US$11 million or Rs.1.2 billion at Rs.15 per share from 80 million shares amounting to 12.2% of the company, will be used to increase its capacity and engage in an expansion worth US$13-14 million, Brandix CEO Ashraff Omar told the Business Times on Thursday.

Currently there is space to expand within the land area in Avissawella where the plant is situated but once the funds are raised it would take about six months to get it off the ground, he said. The funds will be utilized for the construction of a modern production facility at US$3.2 million or Rs.344 million; purchase of knitting, dyeing, finishing machines at US$9.2 million or Rs.1 billion; and a water treatment plant at US$0.75 million or Rs.82 million.

The IPO would result in Textured Jersey becoming a “more professionalized” organization with the infusion of some young people, he said. Pacific Textiles, a controlling shareholder at Textured Jersey currently with a 60% stake, will see its stake reduced to 40% after the IPO while Brandix will own 30.08% and the public 29.92%.

With Pacific Textiles being one of the largest manufacturers in knitted fabrics and the most profitable based in Hong Kong, “we have been thinking how to make it into a professional setup and have leveraged their clout of Textured Jersey in the region,” Mr. Omar said.

The two organizations together will continue to own over 50% in Textured Jersey for five years from the date of the IPO in a bid to maintain control within the company. Funds raised from the Rs.15 per share sale of a little more than 20% of the company in a private placement to about 47 parties in April amounted to US$16 million, Mr. Omar said.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
On arrival visas to continue till online visa plans mature
Textured Jersey to expand with aggressive growth
Sale and no more land leases for foreigners
Government to abide by Shangri-La agreement
BT Poll - Most people unhappy with EPF management
Hasty retreat by Nano cab!
COMMENT - Online visas could hurt tourism
FEATURE - Shot-gun regulations come under fire by industry; SEC urged to consult and regulate
Ceylon Assets Management to launch two more new funds
Strategic Risk Solutions get vital assignment at Hemas Hospitals Chain
Pensions debate at the Sunday Times Business Club meeting
BOI, Labour officials 'save CEO's life'
Corporate governance message must be taken to every part of the country: SLID President
International view of key economic drivers for Sri Lanka
Relief and more access for SMEs to credit
'Move forward' on CEPA, add services, investment : Pakistan HC
Commercial Bank introduces tri-lingual mobile application
Fitch assigns 'B+(lka)' / Stable to Entrust's Multi Finance
CB’s $125 mln in new dollar bonds to settle maturing bonds
Pawan Danavi to add 10.2 MW wind to SL in 2011
Heladiv grows tea exports in Russia, Iraq and Iran
Triple bottom-line – finding that sweet spot
CAMS offers intelligent performance solutions
Microsoft Sri Lanka connects communities across the country
ICMA Australia seminar on ‘Upswing Economies’
PCH firm ups human resource skills for better results
Fonterra enhances product testing capabilities in Sri Lanka
Huge credibility issues over state control of EPF
Govt. drafts new employment framework
Eight lucky winners of Coke competition to get Swiss holiday
CASA Colombo wins best interior design from Bloomberg
Sri Lankan remittances through BOC cross Rs. 108 billion
President assures justice to protesting 3-wheel taxis
Cloning the Padeniya rubber cooperative
CEPA discussion on poverty issues
Horizontal Inequality: does group inequality matter?
Small growers of flowers plead for state recognition


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution