Textured Jersey gearing for GSP +

Textured Jersey Lanka PLC (TJL) is gearing for capacity expansion in its Indian plants in anticipation of GSP + preferential scheme that'll enhance their export demand, officials said.

Their firm, Ocean India now operates with a capacity of 18 tonnes per day (in India) and TJL expects to increase production to 36 tonnes per day by June 2017. "Anticipated investment on expansion is US$6 million and this expansion is to get ready for GSP+,” Sriyan De Silva Wijeratne, CEO TJL told the Business Times.

TJL increased the production capacity of their local plant by 2-3 tonnes per day and included synthetic fabric production. Increase in demand for synthetic cloth- ing in brands such as Calvin Klein, Phillips-Van Heusen and Victoria's Secret has been the main driver for the expansion. Low prices in crude oil, which is the key source of synthetic production, would enable the company to produce the fabrics cheaper, analysts say.

TJL has about 30 per cent of its exports headed to EU's and should get a tangible saving on taxes.

TJL saw a revenue growth of 14 per cent year on year (YoY) to Rs. 6.3 billion in 3QFY17. Growth was supported by volume increase and rupee depreciation. During the quarter, revenue from knit fabric operation in Sri Lanka increased by 15 per cent YoY to Rs. 4.5 billion.