Karur Sabare International Plans Expansion
Sabare International to expand capacity
A new unit, costing Rs. 90 crore., will come up in Perundurai in Tamil Nadu
Coimbatore: Karur-based Sabare International, a textile-exporting unit, plans to invest Rs. 150 crores towards increasing mainly its processing and bedding production capacities.
Its Chief Executive Officer, S. Susindran, told The Hindu that the additional capacities would be ready for operations by the end of the year. The company, which exports cotton and non-cotton floor coverings, bed sheets, towels, curtains and other home textile goods, already had a processing unit with a capacity of 14 million metres a year.
A new unit will come up in Perundurai at a cost of Rs. 90 crore. A bedding plant would be set up at the existing facility of the company at Karur at a cost of Rs. 30 crore. The floor-covering unit at Panipet would be expanded at a cost of Rs. 30 crore. The investments would increase the product range offered by Sabare.
"Earlier, we were supplying to a number of small and medium-scale buyers. But, during the last six years, the focus is on aligning with end retailers. We now supply to 12 retailers. This will go up to 25 eventually," said Mr. Susindran.
The 14-year-old company is aiming at an annual turnover of Rs. 1,000 crore by 2010. It had manufacturing facilities in Panipet and Alappuazh for floor coverings. "Sabare wants to be a one-stop shop for home textiles," he added. With a sourcing office in China already, the company was considering a manufacturing facility there mainly for bedding production.
Mr. Susindran explained that a global retailer would go to a place that was competitive to source his needs. In some of the non-cotton segments, the price of Indian fabric was nearly 25 per cent higher than the Chinese price. Hence, it would be competitive to set up a manufacturing facility in China. The immediate focus was on consolidating the company's facilities in India, he said.
Source:The Hindu
