Ramraj plans new unit in B'luru

 Apparel manufacturer major Ramraj Cotton is planning to set up a new unit in Bengaluru, a top executive said on Wednesday.

Talking to Deccan Herald, Ramraj Cotton Founder and Chairman K R Nagarajan said, “We are scaling up the production of our readymade linen shirts, called Linen Park, from 30,000 pieces per day, to 50,000 pieces. These additional 20,000 pieces will be produced in Bengaluru (near Bommanahalli).”

Nagarajan was in the City, to inaugurate the first company-owned and -operated (COCO) showroom in Bengaluru, on Sampige Road.

Nagarajan explained, “We are under negotiation to set up a new unit with an investment of Rs 25 crore. We would source an order of 1,000 shirt pieces per day (through contract manufacturers) in Bengaluru, and now we will set up our own unit. We will begin production within December 2016, which will generate over 1,200 jobs.”

Ramraj Cotton, which embarked on its journey in 1983, has invested Rs 500 crore till date. The company has a manpower of 5,000 (direct), and over 10,000 (indirect) staff.

Moreover, the company has a vision to shift its corporate office to Bengaluru from Tirupur, owing to availability of skilled manpower, and a prevailing market for international garments.

Nagarajan said, “In Tamil Nadu, we find it difficult to find skilled manpower. Our next generation may come to Bengaluru, and we will make it as our hub.”

Ramraj Cotton, which ventured into online business three years ago, is catering to the needs of traditional buyers abroad.

Nagarajan said, “The traditional people who are settled overseas are buying our products online, by logging into www.ramrajcotton.in. We are shipping products to the US, the UK, Australia and Canada with huge orders of Rs 1.5 lakh per day. Even online, people still prefer dhotis and readymade shirts.”

The company has a good distribution network in Saudi Arabia, Singapore, Malyasia and Sri Lanka.

Production facilities

Tirupur-based Ramraj Cotton has facilities in Erode with combined production capacity of three lakh metres dhotis per day, and the company aims to scale it up to five lakh metres per day. In Madurai, 30,000 pieces of readymade white shirts are made, and at Tirupur, a hosiery unit, where two lakh pieces of inner garments, and 25,000 t-shirts are made. The company plans to reach a capacity of five lakh baniyans per day, within two years.

Recently, the company launched new products for children called little star dhotis (1-15 years), and GenX velcro brand (15-25 years).

Surprisingly, for Ramraj Cotton, Kerala tops the market share with 30-35 per cent, followed by Tamil Nadu (25-30 per cent) and Karnataka and Andhra Pradesh with equal share of 20 per cent.

 The company has two franchisee outlets in Ballari and Mysuru. It aims to set up 100 franchisee stores within two years.

Ramraj Cotton has 55 showrooms in Tamil Nadu, and has presence across India in 6,500 multi-brand outlets (MBO).

The company makes over 2,500 varieties of dhotis. The dhoti business accounts for 60 per cent of the turnover, while the rest is contributed by readymade shirts, undergarments and others.

Cotton’s caught on

 Ramraj Cotton plans to set up own unit in Bengaluru
 To invest Rs 25 crore in the new linen shirt facility
 Says the city is a good market, with skilled manpower as well
 Opens its first company-owned and -operated store in the city