Ramco Fabrics, a Ramco Group company and a division of Rajapalayam Mills Ltd., has commenced the commercial production of its yarn dyeing and weaving plant at Rajapalayam in Tamil Nadu to produce dyed Greige fabric.
The new unit was established as part of the forward integration plan. It entailed an investment of ₹250 crore and it will have an initial production capacity of 10 million metres of Greige yarn-dyed fabrics per annum, said a top official of the group.
Besides, it would also cater to the fibre-dyeing needs of Ramco Melange products, said A.V. Dharmakrishnan, director, Rajapalayam Mills.
Earlier, Ramco’s customers purchased high count yarn from the mill and gave it to a third party for weaving. Later, it was used for making fabrics. “To forego all the trouble, our customers asked us to provide value-added product to them so that they can get woven yarn of consistent quality. For us, it is a value-added step towards forward integration and the customers got consistent quality of weaved yarn,” he said.
Ramco’s textile division comprises Rajapalayam Mills Ltd. and eight other manufacturing units. It boasts of a revenue of ₹1,300 crore. About 30% of it comes from exports and 25% from corporate customers in the domestic market.
