Ramco Fabrics, a Ramco Group company and a division of Rajapalayam Mills Ltd., is setting up a yarn dyeing and weaving plant at Rajapalayam in Tamil Nadu to produce dyed Greige fabric.
“As part of the forward integration plan, we are setting up this new unit,” said P.R. Venketrama Raja, chairman, Ramco Group. “The new unit will become operational by the second quarter of 2019-20.”
Production capacity
The new unit entails an investment of ₹250 crore and it will have an initial production capacity of 10 million metres of Greige yarn dyed fabrics per annum. Besides, it would also cater to fibre dyeing needs of Ramco Melange products, said A.V. Dharmakrishnan, director, Rajapalayam Mills.
On the need for a new unit, Mr. Dharmakrishnan said, “Many of our customers, who manufacture fabrics, used to buy high count yarn from us and give it for weaving. Later, they used it for making fabrics. Instead, they requested 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 for the customers, they get consistent quality of weaved yarn.”
Rajapalayam Mills currently has a capacity of about 1.35 lakh spindles.
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.
