Sri Lanka consolidating knit fabric niche

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

June 27, 2011 (LBO) – Sri Lanka is fast becoming a niche producer of knitwear with the with finished products exports growing faster than those with woven cloth, partly due to the country’s specialization in intimate apparel, officials said.

Omar says Textured Jersey could catch a part of the market, which is about three times its annual revenue. Eventually the firm wants to expand and sell to the region. It is already shipping small volumes to India and Bangladesh.

Textured Jersey Lanka is raising 1.2 billion rupees through an initial public offer on July 07, for a 1.4 billion rupee expansion. It eventually wants to become a larger regional player, perhaps through acquisition.

“Our immediate need is expansion,” Brandix chairman Omar said. “We believe that if we are going to be big in the region, we cannot just do that by borrowing from the banks.

“We must have set of managers who really own parts of the company.

“And we must have a currency in the form of our shares so that we can either go for mergers or acquisitions, through share swaps.”

South Asian exports of knitwear are estimated at over 17 billion dollars a year. Omar says the fabric component is perhaps half.

Last year Textured Jersey made 684