Brandix explores new markets

New Batticaloa factory performs well:

Harshini Perera

Despite the economic downturn, Brandix group had a 20 percent growth last year and performed well in the first two months of this year. Brandix Lanka exports 30 percent of its production to the EU while 60 percent is for the USA.

It has started exploring new markets. Japan was recognized as the new market to where exports have started, Brandix Lanka, Director A.J. Johnpillai said.

He said the new plant in Punani in Batticaloa, where there are 500 employees and 250 machine operators, met the targets for this year.

“The investment for Punani factory was Rs 230 million which was invested for infrastructure as well as for its facilities.”

“We have exported 82,000 units from this factory to our markets. We expect to upgrade the machinery and increase the production through new investments in the future,” he said.

“There are around 25,000 employees working for the Brandix Group but the availability of skilled labour in the Punani area has been a challenge to us which we will soon overcome with further investments.”

“There is a huge competition to which we address with quality products with the best capacity,” Johnpillai said.

“If the company diversifies into other sectors like footwear industry our challenges will be similar. Brandix had been catering as a total package where it can be considered as a backward integrated company. Therefore, we need to look into the centralization of the process. It will benefit in production as well as cost reduction,” he said.

He also said they have looked into the carbon footprint reduction positively and the pay-backs will be in less than three years. Brandix will be able to earn Rs 15 million by selling carbon through the carbon fund in 2012 which will be reduced to seven percent this year. It is expected to reduce the carbon footprint by 30 percent in 2012.

“The retailers have shown an interest to know the efficient management of energy reduction and we in the future will be able to display the tag on the garments mentioning the amount of the reduced carbon on it. There has been an interest among customers in the EU to purchase products which contribute to zero damage to the environment,” he said.