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Remaining Rs 200 m from Internally Generated Funds:
TJ to up fabric production by 40 pc
Ravi LADDUWAHETTY
The Rs 1.2 billion Textured Jersey (TJ) Initial Public Offering (IPO)
opening on July 7, will aim to increase the weft fabric production at
its Seethawaka Industrial Zone factory by 40 percent.
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Textured Jersey Chairman
Ashroff Omar |
“The weekly production of the factory is around 220 tonnes of weft
fabric and we hope to increase it by 40 percent. The total cost of the
expansion will be Rs 1.4 billion and the remainder of Rs 200 million
will be funded by internally generated funds,” a company spokesman told
Daily News Business yesterday.
Textured Jersey will also declare a dividend of one third of the
profits to the new shareholders after the IPO and two thirds will go in
for the factory expansion, he said.
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Economic Development Minister Basil Rajapaksa opening the
Jetwing Blue Hotel in Negombo Pix by Chaminda Hittatiya |
The buildings for the factory expansion will be constructed at a cost
of approximately Rs 344 million (US$ 3.2 million). This facility will be
in line with all modern production requirements and be built according
to internationally accepted quality standards.
Approximately Rs 1 billion (US $ 9.2 million) will be utilized to
purchase knitting machines, preparation machines, dyeing and finishing
machines and infrastructure facilities to house the expansion including
buildings.
This state-of-the-art machinery will enable the Company to increase
its production efficiency and to further facilitate the Company’s future
growth prospects.
The machines will be imported from China and Europe, he said.
Textured Jersey Lanka Limited leased the land from the Board of
Investment of Sri Lanka with an extent of 12 acres. |
