Teejay to innovate to expand product portfolio
View(s):TeeJay Lanka PLC is working with expert external design consultants to develop innovative fabric in a bid to enhance the company’s product portfolio, officials say.
“Materials which come under ‘stretch’ and ‘better moisture management’ were developed and some were picked up by major apparel brands,” Hasitha Premaratne, Director, Teejay Lanka Plc told the Business Times recently. He was a panellist at the recently concluded SoftLogic Investor Forum.
Much of the fabric is still imported from China to South Asia, in particular to Bangladesh, which takes a longer lead time. The company plans to manufacture the fabric in the Sri Lankan or the Indian plant and sell to Bangladeshi apparel manufacturers. This year the company is eyeing at making US$10 to $15 million in revenue from exports to Bangladesh.
Mr. Premaratna said that the Asian composition in the apparel pie will increase in the years to come. “We will try to take a slice in it.” In 2017, the global apparel exports stood at $484 billion, and gradually China and India are taking a lion share in the global apparel retail space.
TeeJay is currently working with brands which can win in the Asian market, Pubudu De Silva, Deputy CEO of Teejay Lanka Plc told the investors.
“Uniqlo which is the second largest retailer in the world has seen rapid growth. If we work with Uniqlo hand in hand to increase exports to Asian market from our top line, we are up on the deal,” he explained.
He said that the company is working with Uniqlo on technically strong products. “We will develop it and export from India and Sri Lanka,” he said.
Mr. Premaratne said it’s important to learn the cost structure and reduce the cost per kg. “We are attacking the cost base and attacking the wastage where costs per kilo can be reduced.” He added that the company has its Sri Lanka operations to control as a hub, where all marketing and product development aspects are being managed from Sri Lanka.
He also noted that Sri Lanka has a real opportunity to further partner and penetrate regional markets with value additions.
“If you look at the value addition opportunity from a South Asian perspective, there is a great opportunity for Sri Lanka. India has a population of 1.2 billion, Pakistan has over 260 million and Bangladesh has 160 million people, which as a whole is bigger than China. Therefore, we can take all the resources available in the region, such as labour, low-cost manufacturing capabilities and cotton, to create value added products,” he said.
(DEC)