S Kumars Nationwide to expand

S Kumars Nationwide Ltd (SKNL) plans to invest around Rs400 crore over the next four years for expansion and diversification projects to tap the growing opportunities in the post-quota regime. The new investment would include:

• Expansion of Reid & Taylor manufacturing capacity: Rs90 crore
• Ready-to-wear garments (total wardrobe solutions): Rs50 crore
• Home textiles: Rs80 crore
• High-value fine cotton shirting: Rs130 crore
• Working capital margin: Rs50 crore

The company says that a presence across the entire value chain coupled with an ability to deal with all key fibres has given ita great scope for new product development. The major thrust will be on two new areas home textiles and high value fine-cotton shirting. The wide range of products will include bed linen, bath accessories, table linen, furnishing fabrics, etc. The shirting project is mainly for the export market.

SKNL also plans to increase the number of showrooms from 16 to 200 and retail outlets to 11,000 from the existing 5,800 by 2008.

The cost will be funded through internal accruals and equity-related investments / FCCB''s / ADRs / GDRs.

after the projects have been completed, SKNL expects its turnover to reach about Rs1,800 crore by 2009-10. The export growth is also expected to up substantially to Rs180 crore in 2006-07 with enhanced focus on export market products like home textiles.

In the ready-to-wear segment, the company will leverage the Reid & Taylor brand and also revive the Tamarind brand, which was used earlier for men''s garments. SKNL is also planning to enter into joint ventures with global brands to launch them in the super-premium segment in India.